June 12, 2005
Representative Moran
Representative Moran
June 12, 2005
The Honorable James P. Moran
U.S House of Representatives
2239 Rayburn House Office Building
Washington, DC 20515-4608
Dear Representative Moran:
RE: H.R. 2317
As a long-time customer of a community bank in your District, I strongly urge you not to co-sponsor or support H.R. 2317, the Credit Union Regulatory Improvements Act of 2005. This bill drastically and unfairly expands the powers and products of credit unions, allowing them to further stray from the purpose for which they were originally established.
Community banks are important to our communities and local economies. We make loans to first time homebuyers, help families pay college tuition, sponsor financial literacy programs, help budding entrepreneurs establish their own business, and establish community giving programs. It is truly inequitable that community banks are forced to compete head to head with tax-exempt credit unions. As you know, 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. 2317 not only continues to subsidize credit unions, but it also gives them additional tools to unfairly compete with the community banks in your District. In fact, this bill would make a mockery of community banking by doubling the credit union industry’s commercial lending authority. The powers of credit unions should not be increased before they become full tax paying members of the financial service marketplace.
H.R. 2317 would only benefit the large, complex credit unions. 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.
Because H.R. 2317 dramatically weakens the capital requirements of credit unions, it also raises serious safety and soundness concerns.
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. 2317.
On behalf of the community bank that holds my deposits and their numerous employees, I thank you for opposing H.R. 2317.
Sincerely,
James Landrith