tag:blogger.com,1999:blog-319775530671726401.post5770450350036463016..comments2023-10-01T09:18:26.162-04:00Comments on Keith Leggett’s Credit Union Watch: Bank Switching to CU: Extrememly Difficult, If Not ImpossibleKeith Leggetthttp://www.blogger.com/profile/14794334790117033547noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-319775530671726401.post-35636495012373081732014-03-15T08:18:37.346-04:002014-03-15T08:18:37.346-04:00The tax exemption arose from something that no lon...The tax exemption arose from something that no longer applies to credit unions.<br />The reason the tax exemptions remains is congress loves the campaign funds it gets from banks and credit unions while delivering them CFPB, durbin, higher compliance costs, cram down and no relief.<br />Definition of insanity and ABA, Cuna Nafcu, icba are part of the problem.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-319775530671726401.post-40938032494830378212014-03-15T08:14:03.476-04:002014-03-15T08:14:03.476-04:00Bring it.Bring it.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-319775530671726401.post-21154009558178616012014-03-14T11:51:23.212-04:002014-03-14T11:51:23.212-04:00Keith,
If the ABA succeeds in removing the credi...Keith, <br /><br />If the ABA succeeds in removing the credit union tax advantage, have you considered what the implications could be to community banks that will then have some very strong competitors who likely will also no longer have growth limitations on business lending, capital attraction and fields of membership? While all of those limitations have ways to get around them, they still keep a vast majority of the industry confined to limited products and growth opportunities. Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-319775530671726401.post-58789165833944023252014-03-14T07:43:17.094-04:002014-03-14T07:43:17.094-04:00The comment by Nafcu to the committee was so silly...The comment by Nafcu to the committee was so silly, it didn't need a response.<br />The real question is, why is it so hard for a credit union to switch charters?<br />No banks want to switch to credit unions, it's a huge step back.<br />Credit unions want to and have wanted to switch to bank charter because it's better for their members and business, in spite of taxes.<br />Why don't you focus on that terrible flaw in the cu regulations?<br />My credit union is one of a few I know that would switch if NCUA wasn't holding us hostage with the rule.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-319775530671726401.post-26377891511203239992014-03-13T10:32:43.962-04:002014-03-13T10:32:43.962-04:00There are financial cooperatives that are taxed. ...There are financial cooperatives that are taxed. So, the tax exemption arises from more than structure. Keith Leggetthttps://www.blogger.com/profile/14794334790117033547noreply@blogger.comtag:blogger.com,1999:blog-319775530671726401.post-80526871870487056622014-03-13T10:25:32.661-04:002014-03-13T10:25:32.661-04:00Interesting commentary. The main point I take fro...Interesting commentary. The main point I take from this is both banks and credit unions have competitive advantages and disadvantages with their charter. Noting the balance sheet restrictions cited above, it is also disingenuous to cite the tax exemption as an unfair competitive advantage. And all of this misses the most obvious and important point...that the structure, a non-profit cooperative, is the primary reason for the tax exemptionAnonymousnoreply@blogger.com