ICBA’s campaign spotlighting credit union tax and regulatory inequities generated new coverage this week with a CNBC segment on acquisitions of community banks.
CNBC Segment: In a segment appearing on Squawk Box and Power Lunch, CNBC’s Leslie Picker said record-high credit union acquisitions of taxpaying community banks have become controversial. “Critics say credit unions’ tax-exempt status gives them an M&A advantage, and their scale no longer justifies the $21 billion in annual taxpayer subsidies they enjoy,” she said.
Stadium Naming Rights: A separate American Banker (subscription required) article on Northwest Federal Credit Union’s deal to secure the naming rights to the Washington Commanders stadium features last week’s statement from ICBA President and CEO Rebeca Romero Rainey that the deal is “just the latest example of how credit unions are violating the limits established by Congress to justify their federal tax exemption.”
Growing Coverage: The latest reports are part of a rise in news coverage of credit union policy, including a recent Axios report and previous S&P Global coverage of the acquisition trend, an American Banker op-ed from a former credit union executive who now works for a community bank, and last year’s CNN report on discriminatory lending at Navy Federal Credit Union.
ICBA View: ICBA has repeatedly called on Congress to investigate credit union tax and regulatory advantages, including in a recent American Banker op-ed from Romero Rainey and ICBA letter to the House Ways and Means Committee.
Grassroots Resources: Community bankers can use ICBA’s Be Heard grassroots action center to call on members of Congress to hold a hearing on credit union policy. Additional resources are available on the ICBA website.
