In a comment letter to the National Credit Union Administration on Wednesday, the American Bankers Association called for the withdrawal of a proposal that would allow large credit unions to issue subordinated debt for regulatory capital purposes from outside for-profit investors—such as corporate debt markets—while maintaining their tax-exempt status.
The Supreme Court’s recent denial of the American Bankers Association’s appeal in a case challenging the National Credit Union Administration’s 2016 field of membership rule “is another unfortunate step toward America’s credit unions becoming nothing more than banks that refuse to pay federal income taxes,” ABA Chair Laurie Stewart said today.
In a letter to House and Senate Armed Services Committee leaders today, the American Bankers Association, the Association of Military Banks of America and the Independent Community Bankers of America called for the equal treatment of banks and credit unions operating on military bases.
In an American Banker op-ed today, American Bankers Association President and CEO Rob Nichols and Association of Military Banks of America President and CEO Steve Lepper condemned a recent move by the National Credit Union Administration to designate all active-duty personnel as low income.
In a letter to the National Credit Union Administration today, ABA vigorously opposed a proposal that would formalize a process for credit unions to purchase taxpaying banks, a practice “growing at an alarming rate” in recent years.
In a letter to congressional leaders today, 51 state bankers associations flagged “opportunistic and unnecessary” attempts by the credit union industry to seek charter enhancements—such as expansion of the member business lending cap—during the coronavirus pandemic.
ABA this week petitioned the U.S. Supreme Court to review a lower court ruling in the association’s challenge of the National Credit Union Administration’s 2016 field of membership rule.
After last week blocking the sale of First American Bank’s remaining Iowa-based assets and branches to a credit union, the Iowa Division of Banking has settled with the bank and approved its application to sell substantially all of its assets and liabilities to the credit union and go out of business as a bank.
The Iowa Division of Banking on Monday blocked the sale of First American Bank’s remaining Iowa-based assets and branches to Green State Credit Union, a $5.8 billion institution based in Iowa City.
Given their extraordinary and unnecessary tax benefit, large credit unions should be held accountable for meeting the needs of the very communities they were created to serve in the first place.