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PRESIDENT’S COLUMNIt’s not just the bankersWell, as we’ve come to find out recently, it isn’talways the bankers we have to look out for when itcomes to protecting the state of credit unions. As I’msure you have already heard, the U.S. Departmentof Treasury has released a proposal that would bedetrimental to the credit union movement. TreasurySecretary Henry Paulson unveiled the Blueprintfor a Modernized Financial Regulatory System,a proposal that calls for a long-term strategy thatwould potentially eliminate separate charters forcredit unions, banks, and thrifts and combine theirregulation, resulting in the demise of credit unions asthey function today.Since the blueprint was leaked to the media,CUNA has been on top of this, letting SecretaryPaulson know that we strongly oppose thisrecommendation because, not only would it severelylimit the choices consumers have for a financialinstitution, it would totally disregard credit unions’democratic and member-owned structure and thebenefits our members and potential members receivefrom better rates and service. It also contains a swipeat the state charter system since the document statesthat a credit union or bank will have to be a federallycharteredentity in order to be federally insured. Thiswould wipe out the state charter system.CUNA President/CEO Dan Mica held aconference call with all state league staff in whichhe shared his belief that the blueprint does not haveany legs at all and that Congress “has no appetite”for this. Mica does feel, however, it is a legitimateconcern but that we shouldn’t put Congress on fullalert just yet with CURIA/CURRA in the pipeline.With that said, I’m asking you to be on “standby” when, and if, there comes a need to act. Rightnow, Secretary Paulson is receiving some backlashfor this part of the proposal. Several Members ofCongress have written letters reassuring CUNA thatthey are “against the elimination of the credit unioncharter and the independent federal credit unionregulator” and “that the U.S. Congress appreciatesthe role credit unions play in the country’s financialservices system.”In a letter to Mica, House Financial ServicesCommittee Chairman Barney Frank reiterated hiscommitment to expanding the credit union movement,noting that “expansion and not contraction” of creditunions will be on the agenda of the financial servicescommittee in the future. Chairman Frank also makesit clear in his note that he is “completely opposed” toprovisions in the Treasury’s “blueprint” for financialinstitution regulatory reform that would “in effectabolish credit unions.”Your League has called on the Board of Directorsand Governmental Affairs Committee members towrite letters to the Treasury opposing this provision. Iam hopeful that there will be no need for us to engageany further in this fight; however, I know I can counton you to be there if action is needed. We must remainever so vigilant when it comes to representing, andprotecting, the credit union system.Guy M. HoodPresident/CEOSpring 2008 3