A glimpse at the cheer worthy, jeer worthy, and tear worthy stories for the week of March 29, 2010.
The Credit Union Association of New York is one step closer to changing state law that prohibits municipalities from depositing funds at credit unions. According to a CUANY press release, the New York City Council unanimously passed Resolution 17. The resolution encourages the state legislature to allow local government entities the option of using credit unions. Although the Federal Credit Union Act allows municipalities to utilize federal credit unions, New York state statue limits municipal choice to commercial banks. CUANY hopes opening the doors to municipal deposits will allow credit unions to contribute more to local economic growth.
Tensions are rising over the national push to increase the credit union member business lending cap. CUNA is lobbying Congress and support from legislators has hit the triple digits, but the American Bankers Association is putting up a strong opposition, saying raising the cap would interfere with the industry’s mission of serving members of modest means (the mission that gives credit unions tax exempt status). The Wall Street Journal notes a more likely reason behind the ABA push back: loan market share. However, the underlying issue still remains. All around the country, small businesses need credit. Credit unions are spreading the word about their ability to serve as an alternative source of capital. What are you doing to inform your lawmakers?
A Florida credit union is heated over the special assessments NCUA is charging retail institutions to cover the failures in the corporate system. Jacksonville Fireman’s Credit Union ($31.3M, Jacksonville, FL) is initiating what it hopes will become a class action lawsuit against the NCUA, the US Banker reported. According to US Banker, the credit union says the corporates should shoulder the long-term responsibility of their viability and should reimburse the retail establishments for the federal regulator’s assessments. A cadre of credit unions have filed individual suits have across the country, but Fireman’s legal maneuver represents a united front by some natural person credit unions.