ABA Banking Journal - July 2008 - (Page 16)

briefing ABA Chairman’s Position ABA Resources Continued from page 15 BRADLEY E. ROCK CEO, Smithtown Bancorp brock@aba.com New name, same bad bill; stopped, then changed CREDIT UNION COMPETITION IS A vital issue for bankers. It angers us and frustrates us. But it also energizes us. So, when ABA asked us to stop a credit union expansion bill in Congress earlier this year, we mobilized our forces and we won. Over the past four years, we’ve been able to stop the credit union industry from passing the Credit Union Regulatory Improvements Act (CURIA). That bill would expand credit unions’ ability to offer multi-million dollar taxsubsidized commercial loans, weaken their capital requirements, and lead to more rapid growth of their industry. Given our success against CURIA over the years, the credit union industry tried to pass a different bill that they claimed was free of controversial changes in the law. That bill was the Credit Union Regulatory Relief Act (CURRA). ABA negotiated for two months on CURRA to make the bill truly non-controversial, but the credit unions would not compromise on their mission of expanding their activities. In April, they decided to seek a vote in the House. The new bill would have allowed credit unions to expand their geographic reach, their commercial lending authority, and their product offerings. The commercial lending cap that applies to credit unions in more than 600 cities would be lifted. And credit unions could offer consumer loans and perhaps credit cards to non-members. Maybe the credit unions thought that if they took the word “Improvements” out of the bill they really want, we might let it slip by. Think again. Working with a very short timeframe, ABA asked our members to tell their representatives that we vigorously oppose CURRA. And you did. Bankers, state bankers associations, bank board members, and employees responded with an intense barrage of calls, faxes, and e-mails. In just two days, we generated 25,000 letters and thousands of phone calls to members of Congress. That was an amazing response, and it reflects the fact that the new ABA really is stronger and speaks with a united voice that benefits everyone. ABA’s opposition to CURRA was so intense that the House pulled the bill from its calendar. That’s an important lesson to remember. When bankers are committed to grassroots activity, we can make our collective voices heard. Our opposition to the passage of CURRA was highly effective. Impressive as it was, however, we couldn’t enjoy the victory for long. Public policy debates in Washington never end. They just keep coming back in different forms. Rep. Barney Frank, who chairs the House Financial Services Committee, said he would try to find common ground on the CURRA bill between bankers and credit unions—and maybe try to pass some regulatory relief for banks along the way. ABA was committed to working with the committee to address the banking industry’s concerns, and we did. Last month, the bill was significantly revised to address ABA’s concerns, and was combined with a bank reg relief bill that we support. As a result, ABA agreed not to oppose the measure when it came up for a vote in the House. The prospects in the Senate, were less certain. What is certain is that a well-oiled, energetic grassroots response to bad legislation is a good way to protect each of our banks—and our industry. BJ expertise in regulatory compliance issues, banking experience, and customer service. These ABA-endorsed services are designed to help banks improve upon their strategic objectives, while providing risk mitigation solutions in compliance, corporate governance, and overall business performance. Crowe currently provides the endorsed risk management consulting services to more than 500 financial institution clients nationally. The endorsed programs include: internal audit services; credit services; corporate governance services; enterprise risk management consulting services; information technology risk services; BSA/AML compliance; and regulatory compliance services. ABA endorses technology solutions from Fiserv ABA has endorsed a range of products and services of Fiserv Inc., a leading provider of information technology services to the banking and insurance industries Among the endorsed services are core account processing, item and image processing, remote deposit, electronic funds transfer, loan origination, cash management, financial management, risk and security, and cash and logistics programs and services. 16 JULY 2008/ABA BANKING JOURNAL Subscribe at www.ababj.com http://www.ababj.com

Table of Contents Feed for the Digital Edition of ABA Banking Journal - July 2008

ABA Banking Journal - July 2008 Contents Editor’s Column Searching for New Paradigms at BIS Snapshot: C&I Asset Quality 100th Anniversary: Then & Now BofA "Event Concept" Wins Awards, and Customers ABA Resources ABA Chairman’s Position M&A: Beat Today's Market Blues Pass the Aspirin Cover Story: Workout Time Correspondent Banking: No Longer Just a Handshake Business Getting IT Right By Thinking It Through Webnotes Are You "Red Flag" Ready? Mailbox Banker’s Mart To Advertise/Index of Advertisers The Economy

ABA Banking Journal - July 2008

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