The Independence Day congressional recess, which ends on July 10, is a prime time for special interest constituents to lobby their returning lawmakers over issues of concern. Feuding Maryland banks and credit unions have marked a number of vying items to test their legislators? loyalties over.
“We?ve been encouraging our bankers to contact their legislators and their congressmen to make sure that they don?t sponsor [credit union] legislation,” said Sarah Lifshin, director of communications for the Annapolis-based, 120-member Maryland Bankers Association. “We have a grassroots campaign going on with regard to credit union legislation.”
Among the war-tugged bills are the Financial Data Protection Act (H.R. 3997/S. 2169) and the Senate?s new Data Security Act of 2006 (S. 3568); the credit union-backed Credit Union Regulatory Improvements Act (H.R. 2317); the banker-backed Credit Union Charter Choice Act (H.R. 3206); and the faltering Financial Services Regulatory Relief Bill (H.R. 3505/S. 2856), which recently stalled over credit unions? sudden rejection of a House-Senate compromise “proffer” that they had previously accepted.
“Accepting the House proffer [allowing thrifts to quintuple their small business lending authority] would severely damage the tenuous balance between federal thrift and credit union charters without comparable and offsetting benefits for credit unions …,” said Credit Union National Association President Dan Mica. “We cannot allow bankers to out-grassroots us on an issue of this magnitude.”
Mica subsequently activated CUNA and affiliated state leagues? nationwide grassroots organizing machine in the matter.
“The small business issue [thrift expansion without parity for credit unions] as well a prompt corrective action [risk-based capital accounting] are our two issues that … we need … that has nothing to do with banks,” said Mike Beall, president of the Columbia-based, 130-member Maryland Credit Union League, “and we find it strange and ironic that the banks feel it?s necessary to weigh in [here].”
