June 2, 2004 Letter to Representative Moran
PO Box 8208
Alexandria, VA 22306-8208
June 2, 2004
The Honorable James P. Moran
U.S House of Representatives
2239 Rayburn House Office Building
Washington, DC 20515-4608
RE: H.R. 3579
As a customer of a community bank in your District, I strongly urge you not to co-sponsor or support H.R. 3579, the Credit Union Regulatory Improvements Act of 2003. This bill drastically and unfairly expands the authorities of the credit union industry. It also expands that industry’s tax subsidy.
Community banks are important to our communities and local economies, both through provision of needed financial services and as an integral part of the tax base. Community banks make loans to first time homebuyers, meet consumer credit needs, help families pay college tuition, sponsor financial literacy programs, help budding entrepreneurs establish their own businesses, promote community development, and pay taxes. It is truly inequitable that community banks are forced to compete head-to-head with a new breed of banks operating as tax-exempt credit unions. Our economy is built on free and fair competition. However, the free market is being disrupted by tax subsidies provided to large, complex credit unions.
H.R. 3579 expands the credit union industry’s tax subsidy by doubling credit unions’ commercial lending authority. Because H.R. 3579 also dramatically weakens the capital requirements of credit unions, it also raises serious safety and soundness concerns.
H.R. 3579 would benefit only the large, complex credit unions that seek to significantly expand tax-subsidized business lending at the expense of community banks. In addition to placing community banks at a greater competitive disadvantage, this bill would harm those credit unions that strive to adhere to their statutory mission of serving persons of modest means.
As a customer of a community bank in your District, all I am asking for is a level playing field. Please do not support or co-sponsor H.R. 3579.
I thank you for not supporting H.R. 3579.
Sincerely,
James Landrith