Credit Unions Push Back Against Misleading Attack Ads

Strategic Insights -

Arlington, VA-based National Association of Federal Credit Unions (NAFCU) President and CEO Dan Berger fired back against the American Bankers Association (ABA) over misleading attack ads targeting credit unions. The ABA's false claims have sparked a response from NAFCU, which cited evidence of the high fines and settlement numbers paid by major banks in the wake of the financial crisis. Berger emphasized that credit unions play a crucial role in the financial services community, adding $17 billion to the economy each year, and warned that eliminating their tax exemption would lead to significant job losses.

Key Takeaways:

  • NAFCU President and CEO Dan Berger wrote House and Senate leaders to counter the American Bankers Association's (ABA) misleading attack ads on credit unions.
  • Berger highlighted the high fines and settlement numbers paid by major banks, including Bank of America ($55.7 billion), JPMorgan Chase ($23.8 billion), Citigroup ($10.6 billion), and Wells Fargo ($6.5 billion), after the banks' misconduct leading up to the financial crisis.
  • Berger noted that an independent study commissioned by NAFCU showed that credit unions add $17 billion to the economy per year and that eliminating their tax exemption would result in the loss of 150,000 jobs per year.
  • Berger cited a Small Business Administration study that showed banks decreased small business lending during the financial crisis while credit unions increased theirs.
  • Berger pointed out the irony that if credit unions have such an "extraordinary advantage," banks would likely convert to credit unions.
  • NAFCU's top legislative priority remains preserving the credit union tax exemption.

Statistics:

  • $55.7 billion: The fine paid by Bank of America after the financial crisis.
  • $23.8 billion: The fine paid by JPMorgan Chase after the financial crisis.
  • $10.6 billion: The fine paid by Citigroup after the financial crisis.
  • $6.5 billion: The fine paid by Wells Fargo after the financial crisis.
  • $17 billion: The annual economic contribution made by credit unions.
  • 150,000: The estimated number of jobs lost if the credit union tax exemption were eliminated.

Sources:

  • "NAFCU President and CEO Dan Berger writes leaders to counter ABA's attack ads on credit unions" [1]
  • National Association of Federal Credit Unions [2]
  • Small Business Administration study [3]
  • Independent study commissioned by NAFCU [4]

References:

[1] NAFCU. "NAFCU President and CEO Dan Berger writes leaders to counter ABA's attack ads on credit unions". [Published March 28, 2019]

[2] National Association of Federal Credit Unions. [Website]

[3] Small Business Administration. [Study: Banks and Credit Unions: Small Business Lending in the Financial Crisis]

[4] Independent study commissioned by NAFCU. [Report: The Economic Contribution of Credit Unions]