Page 1

2011 GAC Briefing Book

LSCU Special Events

Sunday, February 27, 5 pm - 6:30 pm Hospitality Suite | Penn Quarter Room Monday, February 28, 4:30 pm - 6 pm Welcome Reception | Penn Quarter Room Tuesday, March 1, 5 pm - 6 pm Hospitality Suite | Wilson Room


February 21, 2011 Dear CUNA GAC Attendee: On behalf of the League of Southeastern Credit Unions (LSCU), I would like to welcome you to the 2011 CUNA Governmental Affairs Conference (GAC). This meeting is our premier federal legislative and political gathering, and the dedication of credit union leaders, such as you, makes this important grassroots lobbying event possible. The 2011 CUNA GAC offers a great line-up of speakers and events. Our General Session speakers include House Financial Services Committee Chairman Spencer Bachus of Alabama, Florida Congresswoman Debbie Wasserman-Shultz who led the fight against the Durbin interchange amendment, House Speaker John Boehner, and many others who have the ability to make an impact on credit unions. In addition to the speakers, there are numerous break-out sessions on important and timely topics. The League has arranged receptions for our attendees on Sunday, Monday, and Tuesday evenings in the Penn Quarter Room of the Grand Hyatt Hotel. This is a great opportunity to catch up with friends and colleagues, meet new ones, and network among credit union and system partners from our two states. Of course, the main event of the CUNA GAC will be the Hill meetings with members of our Congressional delegations. With so many new members of Congress from both states, getting the credit union message out is critical. This is our chance to let them know that “Credit unions are the best way for consumers to conduct their financial services.� I hope you will take time to look through this briefing book. It contains a schedule of events, information on our Hill visits, briefing materials, and other information to help you get the most out of your CUNA GAC experience. I look forward to seeing all of you in Washington, D.C. Please do not hesitate to contact me or any of the Governmental Affairs staff if we can help you with your time at the CUNA GAC. Sincerely,

Patrick La Pine President/CEO


LSCU State Governmental Affairs Conference

LSCU State Governmental Affairs Conference

Montgomery, AL

Tallahassee, FL

Location & Fee Information

Location & Fee Information

Renaissance Hotel Registration $99 per person 201 Tallapoosa Street Montgomery, Alabama 36104

Hotel Duval 415 North Monroe Street Tallahassee, Florida 32301

Questions: Becki Payne, 866.231.0545 x2129 becki.payne@lscu.coop

Questions: Becki Payne, 866.231.0545 x2129 becki.payne@lscu.coop

Conference Agenda

Conference Agenda

Wednesday, March 30, 2011 8:30am – 10:30am Directors Financial Literacy Training Session (Optional Pre-Conference Training) 10:30am – 11:30am Registration 11:30am – 12:45pm GAC Awards Luncheon

Registration: $99 per person

Tuesday, April 12, 2011 9:30am – 11:30am Directors Financial Literacy Training Session (Optional Pre-Conference Training) 1pm Tallahassee Chapter Golf Tournament to Benefit the LSCU PAC Southwood Golf Course

1pm – 2pm Opening Session 2pm – 3pm LSCU’s 2011 Legislative & Regulatory Issues Agenda 3:15pm – 4:15pm Roundtable: PAC Fundraising & Advocacy Best Practices 4:15pm – 5:15pm State Legislative Outlook 5:15pm – 7pm Legislator Reception Thursday, March 31, 2011 8am – 9:30am Regulator Roundtable & Continental Breakfast

Wednesday, April 13, 2011 7:30am – 8:30am Registration & Continental Breakfast 8:30am – 10am Opening Session 10:15am – 11:15am State Legislative Outlook 11:30am – 1pm GAC Awards Luncheon 1:15pm – 2:30pm Roundtable: PAC Fundraising & Advocacy Best Practices 2:45pm – 4pm LSCU’s 2011 Legislative & Regulatory Issues Agenda 5pm – 6:30pm Legislator Reception

9:30am Adjourn & Depart for Hill Visits Thursday, April 14, 2011 FEATURED SPEAKERS Ryan Donovan, Vice President of Legislative Affairs Credit Union National Association Herb Yolles, Director of Region III National Credit Union Association Larry Morgan, Administrator Alabama Credit Union Administration Alabama Legislative Leadership

7:45am – 8:30am Continental Breakfast 8:30am – 10am Regulator Roundtable 10am Adjourn & Depart for Hill Visits FEATURED SPEAKERS Ryan Donovan, Vice President of Legislative Affairs Credit Union National Association Herb Yolles, Director of Region III National Credit Union Association Bruce Ricca, Bureau Chief Bureau of Credit Unions Linda Charity Florida Office Financial Regulation LSCU Multi-Client Lobbyists: Jim Smith, Smith & Ballard Mercer Fearington, Fearington & Smith LLC


You are cordially invited to the

Creating the Credit Union Future” at the CUNA GAC

LSCU Hospitality Suite Sunday, February 27 Penn Quarter Room 5pm – 6:30pm Sponsored by:

LSCU Welcome Reception Monday, February 28 Penn Quarter Room 4:30pm – 6pm Sponsored by:

LSCU Hospitality Suite Tuesday, March 1 Wilson-Roosevelt Room 5pm – 6pm Sponsored by:

All Events Held at the Grand Hyatt 1000 H Street NW | Washington, DC


2011 GAC Schedule at a Glance February 27 – March 3 Sunday, February 27, 2011 12:00 p.m. – 8:30 p.m. Conference Registration and Welcome Center Open

WCC West

1:00 p.m. – 5:15 p.m.

NEW! Small Credit Union Roundtable

WCC 207A

5:00 – 6:30

LSCU Hospitality Room Sponsored by Southeast Corporate & Leverage

Grand Hyatt Penn Quarter

7:00 p.m. – 8:30 p.m.

Exhibit Hall Grand Opening Reception

WCC Hall D

8:30 p.m.

Evening Entertainment – Three Dog Night Sponsored by CUNA Councils

WCC Hall E

Monday, February 28, 2011 7:00 a.m. – 4:30 p.m.

Conference Registration

WCC West

7:30 a.m. – 9:15 a.m.

Exhibit Hall Open (Continental Breakfast)

WCC Hall D

9:00 a.m. – 10:30 a.m. Opening General Session Including Mark Halperin and John Heilemann

WCC Hall E

10:30 a.m. –11:30 a.m. CUNA Annual General Meeting

WCC Hall E

11:30 a.m. – 1:30 p.m. Exhibit Hall Open (Lunch Provided)

WCC Hall D

1:30 p.m. – 2:30 p.m.

Legislative and Political Update

WCC Hall E

2:30 p.m. – 4:00 p.m.

General Session Including Chesley B. “Sully” Sullenberger, III

WCC Hall E

4:30 – 6:00

LSCU Attendee Reception Sponsored by CU Solutions & Morgan Stanley Smith Barney

Grand Hyatt Penn Quarter

5:30 p.m.

Herb Wegner Memorial Awards Dinner (Separate ticketed event)

Grand Hyatt

Tuesday, March 1, 2011 7:00 a.m. – 5:00 p.m.

Conference Registration and Welcome Center Open

WCC West

7:30 a.m. – 8:45 a.m.

Exhibit Hall Open (Continental Breakfast)

WCC Hall D

9:00 a.m. – 12:00 p.m. General Session Including Point-Counterpoint with Arianna Huffington and Mary Matalin

WCC Hall E


12:00 p.m. – 1:45 p.m. Exhibit Hall Open (Lunch Provided)

WCC Hall D

2:00 p.m. – 3:15 p.m. Breakout Sessions  Examinations in a challenging economic environment;  Activating your grassroots membership;  Preparing for new rules on debit interchange;  The focus in Congress on GSE reform;  Dealing with the media in stressful times;  Preparing for SAFE Act Registration

WCC

3:30 p.m. – 4:45 p.m. Breakout Sessions  The 2011 economic forecast: implications for CUs  Changing fiduciary responsibilities for credit union directors  Educating new members of Congress about the CU difference  Lending in the Dodd-Frank era  Washington’s new push for deficit reduction: Implications for the CU tax Exemption

WCC

4:45 p.m. – 6:00 p.m.

Reception with NCUA Board and Regional Directors

WCC Exhibit

5:00 – 6:00 p.m.

LSCU Hospitality Room Sponsored by Co-OP Financial Services

Grand Hyatt Wilson Room

5:00 p.m. – 6:30 p.m.

Exhibit Hall Closing Session

WCC Hall D

9:00 p.m. – 10:30 p.m. Late Night at GAC (Sponsored by CUNA Mutual Group, Renaissance)

Renaissance Ballroom

Wednesday, March 2, 2011 8:00 a.m. – 12:00 p.m. Conference Registration and Welcome Center Open

WCC West

8:30 a.m. – 11:45 a.m. General Session 8:45 Alabama Congressman Spencer Bachus speaks All AL and FL Attendees invited for a meeting backstage Immediately after he speaks. 9:30 FL Congresswoman Debbie Wasserman-Shultz speaks

WCC Hall E

CAPITOL HILL VISITS

See Schedule

7:00 p.m. Closing Conference Gala

Renaissance Ballroom

Thursday, March 3, 2011 Capitol Hill Visits Continue Travel Home Safely and THANK YOU for your Advocacy Efforts!

See Schedule


2011 CUNA GAC Alabama Attendees

Anise, Ola

President/CEO

Azalea City CU

Mobile

Bell, Kayce

Chief Operations Officer

Alabama CU

Tuscaloosa

Bell, Scotty

Branch Manager

Family Savings FCU

Gadsden

Boysen, Jane

Manager

Brackin, Donna

Montgomery

Supervisory Committee

Alabama Rural Electric FCU Army Aviation Center FCU

Daleville

Brown, Franklin

Director/Supervisory Committee

Listerhill CU

Sheffield

Burns, Wally

Director

Family Savings FCU

Gadsden

Cantrell, Marquetta

President/Manager

Rocket City FCU

Huntsville

Cobb, Tommy

Chief Executive Officer

Tuscaloosa Credit Union

Tuscaloosa

Cochran, Jason

Director of Legislative Affairs

LSCU

Birmingham

Conway, Carolyn

VP-Compliance/Internal Auditing

Listerhill CU

Sheffield

Dauro, Vince

Director

Rocket City FCU

Huntsville

Davis, Mickey

Director

Army Aviation Center FCU

Daleville

Eagerton, Larry

Director

Army Aviation Center FCU

Daleville

Faulkner, Charles

President/CEO

Jefferson County ECU

Birmingham

Gerety, Christopher

General Counsel

APCO ECU

Birmingham

Gordon, Robbie

Grassroots/PAC Coordinator

LSCU

Birmingham

Green, Brad

President/CEO

Listerhill CU

Sheffield

Hasty, Jeffrey

Chief Operations Officer

Naheola Credit Union

Pennington

Higgins, Rick

Vice President

Coosa Pines FCU

Childersburg

Howell, Zac

VP-Adm/Mktg

Family Security CU

Decatur

Jeffreys, David

Director

Listerhill CU

Sheffield

Johnson, Mark

Chief Executive Officer

Naheola Credit Union

Pennington

Jones, Gladys

Board Vice Chair

Alabama CU

Tuscaloosa

Keller, Jeanette

Manager

Blue Flame CU

Mobile

La Pine, Patrick

President/CEO

LSCU

Tallahassee

Mann Jr, Merrill

Vice President

APCO ECU

Birmingham

Massey, Mark

Director

Listerhill CU

Sheffield

McCaghren, Debra

VP-Finance/IT

Family Security CU

Decatur

McCarty, Will

Sr. VP of Gov't Affairs

LSCU

Birmingham

McGee, Joe

President/CEO

Legacy Community FCU

Birmingham

Mingus, Charlie

Board Chair

Army Aviation Center FCU

Daleville

Morgan, Clay

VP-Finance

Listerhill CU

Sheffield


Nobbley, Shane

Chief Executive Officer

Family Security CU

Decatur

Pate, Wendell

Board Secretary

APCO ECU

Birmingham

Reed, Ronnie

Director

Family Savings FCU

Gadsden

Rogers, Eunice

CEO/Treasurer

NFCDCU

New York

Senn, Shirley

Consultant

Corporate America CU

Santee

Sharp, Cole

VP-Lending/Branch Ops

Family Security CU

Decatur

Smith, Larry

Board Vice Chair

Rocket City FCU

Huntsville

Steensma, Bob

President/CEO

Five Star CU

Dothan

Summerall, Ron

Chief Executive Officer

Alabama Teachers CU

Gadsden

Sutter, Buddy

Financial Services Officer

Jefferson County ECU

Birmingham

Swofford, Steve

President/League Director

Alabama CU

Tuscaloosa

Varnon, Danny

Executive Vice President

Family Savings FCU

Gadsden

Waldrop, Cracker

Board Treasurer

Army Aviation Center FCU

Daleville


2011 CUNA GAC Florida Attendees

Adkins, Darrell

Director

Suncoast Schools FCU

Tampa

Barwick, Annette

Director

Suncoast Schools FCU

Tampa

Boyle, Bill

Board Emeritus

IBM Southeast EFCU

Boca Raton

Burns, Richard

Legal Counsel

Dade County FCU

Doral

Burrell, Bonnie

Board Chair

Dade County FCU

Doral

Cihota, John

Director

Pen Air FCU

Pensacola

Coarsey, Marsha

Board Treasurer

Community First CU

Jacksonville

Darling, Linda

Corporate Meeting Planner

Suncoast Schools FCU

Tampa

Deese, John

President/CEO

PBC CU

West Palm Beach

Diamond, Betty

Board Chair

Tropical Financial CU

Pembroke Pines

Dorety, Tom

CUNA Director

Suncoast Schools FCU

Tampa

Dougherty, Kevin

SVP/Information Services

CFE Federal Credit Union

Lake Mary

Ferreira, Marla

VP-Asset Management

Dade County FCU

Doral

Fields, Ron

President/CEO

Pen Air Federal Credit Union

Pensacola

Fisher, Bob

President/CEO

Grow Financial FCU

Tampa

Flynn, Pete

Supervisory Committee

Suncoast Schools FCU

Tampa

Garcia, Laida

CUNA Director

floridacentral CU

Tampa

Garcia, Mario

Director

Dade County FCU

Doral

Garland, Marvin

Chief Operating Officer

LEVERAGE

Tallahassee

Geer, Hilda

Board Vice Chair

Tropical Financial CU

Pembroke Pines

Gilbert, Wanda

Board Secretary

United Police FCU

Miami

Golub, Larry

Director

CFE FCU

Lake Mary

Goodwin, Kelly

Director

Orlando FCU

Orlando

Greene, Errol

Board 2nd Vice Chair

CFE FCU

Lake Mary

Gunter, Rose

President/CEO

Healthcare's Cooperative CU

Jacksonville

Helber, Rich

President/CEO

Tropical Financial CU

Pembroke Pines

Hennessey, Bill

Director

BrightStar CU

Sunrise

Hewitt, Ted

Director

VyStar Credit Union

Jacksonville

Hirabayashi, John

President/CEO

Community First CU

Jacksonville

Howard Jr, Willie

Director

Space Coast CU

Melbourne

Huskey, Dr Gary

Director

Suncoast Schools FCU

Tampa

Johnson, Thelma

President/CEO

Dade County FCU

Doral

Joseph, George

President/CEO

Dade County FCU

Doral


Kucey, Jeanne

President/CEO

JetStream FCU

Miami Lakes

Lai, Charlie

Chief Information Officer

Fairwinds CU

Orlando

Langhorst, Michael

AVP/Branch Manager

CFE FCU

Lake Mary

Lawrence, Bill

Supervisory Committee

BrightStar CU

Fort Lauderdale

Lefkowicz, Robert

Manager II-Service Center

Suncoast Schools FCU

Tampa

First Florida Credit Union

Jacksonville

Marsh, Pat

President/CEO/League Treasurer Corporate Meeting Planner

Suncoast Schools FCU

Tampa

McNutt, Dan

Board Treasurer

Fairwinds CU

Orlando

Melbourne Jr, Joe

President/CEO

CFE FCU

Lake Mary

Metcalf, Chick

Board Chair

Orlando FCU

Orlando

Miller, Brad

President/CEO

Southeast Corporate FCU

Tallahassee

Miller, Kevin

SVP-General Counsel

CFE FCU

Lake Mary

Neusaenger, John

President/CEO

Orlando FCU

Orlando

O'Neil, Hon Paula

Director

Florida West Coast CU

Brandon

Orr, Dr Dorothy

Board Chair

BrightStar CU

Sunrise

Ott Wood, Mary

President/CEO

Florida West Coast CU

Brandon

Palladino, Dr Karen

Director

Space Coast CU

Melbourne

Perez, Mike

Director

Tropical Financial CU

Pembroke Pines

Prior, Henry

Supervisory Committee Chair

City County CU

Fort Lauderdale

Renderos, Julie

Corporate Meeting Planner

Suncoast Schools FCU

Tampa

Reyes, Jace

President/CEO

Miami Postal Service CU

Miami

Reynolds, Christina

Chief Executive Officer

Florida State EFCU

Pensacola

Reynolds, Linda

President/CEO

Pinellas FCU

Largo

Ross Esq, Jared

Director of Legislative Affairs

LSCU

Tallahassee

Satchel, Tony

Corporate Meeting Planner

Suncoast Schools FCU

Tampa

Schleiter, Rob

Executive Vice President

Southeast Corporate FCU

Tallahassee

Shea, Tom

Director

PBC CU

West Palm Beach

Skaggs, Rick

President/CEO

USF FCU

Tampa

Snead, Lisa

Director

Fairwinds CU

Orlando

Snelgrove, Jim

Board Chair

PBC CU

West Palm Beach

Southall, David

President/CEO

Innovations FCU

Panama City

Starr, Mark

President/CEO

Florida CU

Gainesville

Strickland, Ann

Board Secretary

Miami Postal Service CU

Miami

Thames, Justin

Political Action Coordinator

LSCU

Tallahassee

Turner, Dr Susan

Director

Suncoast Schools FCU

Tampa

Weinstein, Suzanne

Chief Financial Officer

Orlando FCU

Orlando

Lister, Brent


West, Terry

President/CEO

VyStar Credit Union

Jacksonville

Whitlock, Dr Earl

Board Chair

Suncoast Schools FCU

Tampa

Wilkinson, Annie

President/CEO

Dade County FCU

Doral

Wood III, Art

President/CEO

Railroad and Industrial FCU

Tampa

Worrell, Darryl

President/CEO

Envision CU

Tallahassee

Wright, Harry

Board Vice Chair

Dade County FCU

Doral


2011 CUNA GAC On Site Contact Information Patrick La Pine, CEO (850) 212-3160 (Mobile) Patrick.lapine@lscu.coop

Will McCarty Sr. VP of Governmental Affairs (205) 516-6985 (Mobile) Will.mccarty@lscu.coop

Jared Ross Director of Legislative Affairs, FL (850) 590-6570 (Mobile) Jared.ross@lscu.coop

Jason Cochran Director of Legislative Affairs, AL (205) 249-4478 (Mobile) Jason.cochran@lscu.coop

Justin Thames (FL) Political and Grassroots Coordinator, FL (850) 345-7795 (Mobile) Justin.thames@lscu.coop

Robbie Gordon (AL) Political and Grassroots Action Coordinator, AL (205) 834-1266 (Mobile) Robbie.gordon@lscu.coop

Credit Union National Association 601 Pennsylvania Ave NW, South Bldg Washington DC 20004-2601 Main # (202) 638-5777 Fax# (202) 638-7734

Grand Hyatt Washington 1000 H Street NW Washington, DC 20001 Phone: 202-582-1234 Fax: 202-637-4781


Alabama Key Congressional Staff Senator Jeff Sessions 335 Russell Senate Office Building Washington, DC 20510 (202) 224-4124 Chief of Staff: Legislative Director: Financial Inst. Staffer: Scheduler:

Rick Dearborn Sandra Luss Mike Sharp Kate Hollis

Senator Richard Shelby 304 Russell Senate Office Building Washington, DC 20510 (202) 224-5744 Chief of Staff: Legislative Director: Financial Inst. Staffer: Scheduler:

Alan Hanson Graham Smith Jim Johnson (on Committee Staff) Anne Caldwell

District 1 – Congressman Jo Bonner 2236 Rayburn House Office Building Washington DC 20515 (202) 225-4931 Chief of Staff: Alan Spencer Legislative Director: Mike Sharp Financial Inst. Staffer: Mike Sharp Scheduler: Errical Bryant District 2 – Congresswoman Martha Roby 414 Cannon House Office Building Washington, DC 20515 (202) 225-2901 Chief of Staff: Stephen Boyd Legislative Director: Jennifer Warren Financial Inst. Staffer: Frank Barnett Scheduler: Jessica Fuller District 3 – Congressman Mike Rogers 324 Cannon Office Building Washington DC 20515 (202) 225-3261 Chief of Staff: Marshall Macomber Legislative Director: Whitney Verett Financial Inst. Staffer: Forrest McConnell Scheduler: Cameron Bishop


District 4 – Congressman Robert Aderholt 2264 Rayburn House Office Building Washington, DC 20515 (202) 225-4876 Chief of Staff: Mark Busching Legislative Director: Mark Dawson Financial Inst. Staffer: Graham Hixon Scheduler: Stephanie Brown District 5 – Congressman Mo Brooks 1641 Longworth House Office Building Washington, DC 20515 (202) 225-4801 Chief of Staff: Mark Pettitt Legislative Director: Lance Seibenhener Financial Inst. Staffer: Stephen Davis Scheduler: Stephanie Campbell District 6 – Congressman Spencer Bachus 2246 Rayburn House Office Building Washington, DC 20515 (202) 225-4921 Chief of Staff: Michael Staley (Personal Office) Legislative Director: Philip Swartzfager Financial Inst. Staffer: NOTE: (Handled through Multiple Committee Staff) Scheduler: Gerry Cashin District 7 – Congresswoman Terri Sewell 1133 Longworth House Office Building Washington, DC 20515 (202) 225-2665 Chief of Staff: Nicholas Reynolds Legislative Director: Matt Reel Financial Inst. Staffer: Cachavious English Scheduler: Sophie Cooper


Florida Key Congressional Staff Senator Marco Rubio B 40 A Dirksen Senate Office Building Washington, DC 20510 (202) 224-3041 Chief of Staff: Cesar Conda Legislative Director: Sally Canfield Financial Inst. Staffer: Scheduler: Bexie Nobles Senator Bill Nelson 716 Hart Senate Office Building Washington DC 20510 (202) 224-5274 Chief of Staff: Legislative Director: Financial Inst. Staffer: Scheduler:

Pete Mitchell Suzie Perez-Quinn Ryan McCormick Alica Tighe

District 1 – Congressman Jeff Miller 2416 Rayburn House Office Building Washington, DC 20515 (202) 225-4136 Chief of Staff: Dan McFaul Legislative Director: Financial Inst. Staffer: Elby Godwin Scheduler: Rina Shah District 2 – Congressman Steve Southerland 1229 Longworth House Office Building Washington, DC 20515 (202) 225-5235 Chief of Staff: Tom Stallings Legislative Director: Karen Williams Financial Inst. Staffer: Karen Williams Scheduler: Tom Stallings District 3 – Congresswoman Corrine Brown 2336 Rayburn House Office Building Washington, DC 20515 (202) 225-0123 Chief of Staff: Ronnie Simmons Legislative Director: Nick Martinelli Financial Inst. Staffer: Lee Footer Scheduler: Cathy Gass


District 4 – Congressman Ander Crenshaw 137 Cannon House Office Building Washington, DC 20515 (202) 225-2501 Chief of Staff: John Ariale Legislative Director: Erika Stiebel Financial Inst. Staffer: J ennifer Debes Scheduler Lynn Miller District 5 – Congressman Richard Nugent 1547 Longworth House Office Building Washington, DC 20515 (202) 2251002 Chief of Staff: Justin Graybelle Legislative Director: Katharine Troller Financial Inst. Staffer: Katharine Troller Scheduler Cate Minichino District 6 – Congressman Cliff Stearns 2306 Rayburn House Office Building Washington, DC 20515 (202) 225-5744 Chief of Staff: Jack Seum Legislative Director: Matt Mandel Financial Inst. Staffer: Joe Millato Scheduler: Sarah Schefer District 7 – Congressman John Mica 2313 Rayburn House Office Building Washington, DC 20515 (202) 225-4035 Chief of Staff: Russell Roberts Legislative Director: Brian Waldrip Financial Inst. Staffer: Gerry Lynam Scheduler: Mary Klappa District 8 – Congressman Daniel Webster 1039 Longworth House Office Building Washington, DC 20515 (202) 225-2176 Chief of Staff: Pepper Pennington Legislative Director: Frank Walker Financial Inst. Staffer: Garrett Bess Scheduler: Elizabeth Tyrrell


District 9 – Congressman Gus Bilirakis 1124 Longworth House Office Building Washington, DC 20515 (202) 225-5755 Chief of Staff: David Peluso Legislative Director: Richard Hoar Financial Inst. Staffer: Lauren Pfingstang Scheduler: Tim Tracy District 10 – Congressman Bill Young 2407 Rayburn House Office Building Washington, DC 20515 (202) 225-5961 Chief of Staff: Harry Glenn Legislative Director: Brad Stine Financial Inst. Staffer: Matthew Dickerson Scheduler: Christina Burmeister District 11 – Congresswoman Kathy Castor 137 Cannon House Office Building Washington, DC 20515 (202) 225-3376 Chief of Staff: Clay Phillips Legislative Director: Rene Munoz Financial Inst. Staffer: Rene Munoz Scheduler: Lara Hopkins District 12 – Congressman Dennis Ross 404 Cannon House Office Building Washington, DC 20515 (202) 225-1252 Chief of Staff: Fred Piccolo Legislative Director: Anthony Foti Financial Inst. Staffer: Elise Gatley Scheduler: Lisa Griffin District 13 – Congressman Vern Buchanan 221 Cannon Office Building Washington, DC 20515 (202) 225-5015 Chief of Staff: Dave Karvelas Legislative Director: Shane Lieberman Financial Inst. Staffer: Margo Keeler Scheduler: Margo Keeler


District 14 – Congressman Connie Mack 115 Cannon House Office Building Washington, DC 20515 (202) 225-2536 Chief of Staff: Hanz Klinger Legislative Director: Gaylen Roehl Financial Inst. Staffer: Matthew Satterley Scheduler: Laruen Kelm District 15 – Congressman Bill Posey 132 Cannon House Office Building Washington, DC 20515 (202) 225-3671 Chief of Staff: Stuart Burns Legislative Director: Financial Inst. Staffer: Nicole McCleary Scheduler: Catherine Eng District 16 – Congressman Tom Rooney 1529 Longworth House Office Building Washington, DC 20515 (202) 225-5792 Chief of Staff: Brian Crawford Legislative Director: Hannah Walker Financial Inst. Staffer: Hannah Walker Scheduler: Michele Reinshuttle District 17 – Congresswoman Fredrica Wilson 208 Cannon House Office Building Washington, DC 20515 (202) 225-4506 Chief of Staff: Tasha Cole Legislative Director: Financial Inst. Staffer: Scheduler: Toby Watkins District 18 – Congresswoman Ileana Ros-Lehtinen 2470 Rayburn House Office Building Washington, DC 20515 (202) 225-3931 Chief of Staff: Art Estopinan Legislative Director: Sarah Gamino Financial Inst. Staffer: Scheduler: Christine Del Portillo


District 19 – Congressman Ted Deutch 1024 Longworth House Office Building Washington, DC 20515 (202) 225-3001 Chief of Staff: Joshua Rogin Legislative Director: Ellen McLaren Financial Inst. Staffer: Joshua Litman Scheduler: Alex Rocha District 20 – Congresswoman Debbie Wasserman-Shultz 118 Cannon House Office Building Washington, DC 20515 (202) 225-7931 Chief of Staff: Tracie Pough Legislative Director: Coby Dolan Financial Inst. Staffer: Ian Rayder Scheduler: Irena Vidulovic District 21 – Congressman Mario Diaz-Balart 2244 Rayburn House Office Building Washington, DC 20515 (202) 225-4211 Chief of Staff: Cesar Gonzalez Legislative Director: Miguel Mendoza Financial Inst. Staffer: Scheduler: Kelly Dernnon District 22 – Congressman Allen West 1708 Longworth House Office Building Washington, DC 20515 (202) 225-3026 Chief of Staff: Jonathan Blyth Legislative Director: Josh Grodin Financial Inst. Staffer: Josh Grodin Scheduler: JoBeth Banas District 23 – Congressman Alcee Hastings 2353 Rayburn House Office Building Washington, DC 20515 (202) 225-1313 Chief of Staff: Lale Mamaux Legislative Director: Jason Harris Financial Inst. Staffer: Mark Perkins Scheduler: Anna Gonzalez


District 24 – Congresswoman Sandy Adams 216 Cannon House Office Building Washington, DC 20515 (202) 225-2706 Chief of Staff: Charlie Keller Legislative Director: Financial Inst. Staffer: Scheduler: Courtney Cannon District 25 – Congressman David Rivera 328 Cannon House Office Building Washington, DC 20515 (202) 225-2778 Chief of Staff: Stephen Vermillion Legislative Director: Financial Inst. Staffer: Hector Arguillo Scheduler: Barbara Lopez


Hike-the-Hill Congressional Meetings Our schedule of meetings with our members of Congress is always tentative until just days before the meetings. To accommodate all offices, changes to the schedule must be made until all are finalized. In order to ensure that you have the most accurate and complete schedule of our meetings, the League will be sending the schedule separately by email at the end of the week before departure for the GAC. Updates to the schedules may be necessary as late as just days before the meetings. The most up-to-date schedules will be distributed at the League’s hospitality receptions on Sunday, Monday, and Tuesday nights, so please attend these events. Assignments of Meetings The schedule of Hill visits will be a list of which visits each credit union is assigned to, the time, and location. League staff is working to ensure each attendee is able to attend as many meetings as possible with members of Congress representing areas where your credit union operates. If your credit union is assigned to conflicting meetings, please contact League staff to arrange attendance to ensure all Congressional meetings are well represented by credit unions. Because of the limited space in the Senate offices, and the large number of attendees from Alabama and Florida, Senate meetings will be assigned to ensure that each Senate meeting is well represented but can also accommodate those attending. We will provide a list of individuals from credit unions to attend each visit, and ask that those who are assigned to a particular Senate meeting attend, but if you are not assigned we hope you understand the space limits that necessitate assigning individuals to these four meetings. If you have any questions or concerns about your assigned Senate meeting, please contact League staff prior to the meeting.


CUNA HIKE THE HILL CONGRESSIONAL MEETING OUTLINE Every Congressional visit is different. Participants bring different perspectives and priorities based on who their credit union serves, the services it offers and the market in which it operates. Some credit unions have deep relationships with their Representatives and Senators while others are in the process of developing stronger relationships. Regardless, these perspectives and relationships are extremely valuable in advancing our legislative agenda on Capitol Hill. For the visits during the 2011 Government Affairs Conference, CUNA encourages participants to emphasize the number of credit union members in each Congressional district (as indicated by Project Zip Code) and to advocate the following issues: Credit Unions Are the Best Way for Consumers to Conduct Their Financial Services • Benefits to Credit Union Members o Lower interest rates on loans and fees on services than for-profit banks o Higher rates of return on deposits than for-profit banks o One member, one vote gives credit union members a voice in how the credit union operates o Great service from a financial institution that exists to serve members, not enrich shareholders • Benefits to All Consumers o The presence of credit unions in a market motivates banks to keep their rates and fees competitive, benefiting all consumers. • Credit union members save over $6.5 billion each year by doing business with their credit union as opposed to a bank. Bank customers benefit, as well, to the tune of $3.5 billion because credit unions are in the marketplace. This means that as a result of credit unions existing in the United States, consumers save over $10 billion. The Federal Reserve’s Debit Interchange Proposal is Unworkable and will Increase the Cost and Reduce the Availability of Financial Services for Consumers: Congress should stop, study and start over. • The Fed's debit interchange proposal is unworkable because it does not provide small issuers with adequate protections, as Congress intended when the small issuers were exempted, or carved out, from the debit interchange law. o First, the Fed has not taken into consideration the perspective of smaller institutions offering debit card services. For smaller institutions, the cost of providing debit services is greater than for larger institutions. o Second, the Fed proposal does not include any enforcement provision for the exemption for small issuers. • The failure to protect credit unions and community banks and the direct and indirect pressures in the marketplace, together will result in making small issuers subject to the capped debit interchange rate that the Fed proposes for large issuers. o This proposal will hurt credit unions and their members. Today’s percentage-based debit interchange system reflects a credit union’s exposure; the Fed’s proposed flat capped debit rate creates exposure and loss for a credit union. o The effect will be more than the revenue hit for financial institutions. Credit unions – because of their restrictive capital structure – will be forced to pass along these losses to their members or abandon debit card programs. Consumers lose. • Congress needs to act. Repeal is the preferred remedy, but we know that is not politically feasible. Therefore, we encourage Congress to: Stop. Study. Start Over. o The proposed rule needs to be delayed – either unilaterally by the Federal Reserve or statutorily by Congress. During that delay time, the direct and indirect impact on credit unions and banks needs to be studied and Congress needs to fix the statutory language. o The fix should involve directing the Fed to look at the complete picture of the value of the card payment system, establish a system that does not include a capped rate, and enforce the exemption and protect small issuers.


Credit Unions Should Be a Part of the Solution for Small Businesses: Raising the Credit Union Member Business Lending Cap Will Help Small Businesses Create over 100,000 new jobs • Credit unions have been lending to their business-owning members for a century. In fact, there was no member business lending cap prior to 1998. • Net charge-off rates for credit union business loans are lower than for business loans made by banks. • At a time when banks are withdrawing credit from America’s small businesses, credit unions have actually been expanding credit to small businesses. • Credit unions could lend up to $10 billion in the first year if the MBL cap was raised, helping America’s small businesses create over 100,000 new jobs. This is economic stimulus that does not cost the taxpayers a dime and does not increase the size of government. • Members of Congress constantly remind credit union advocates that the bankers oppose additional credit union business lending. They say the best solution would be to help both banks and credit unions. Congress just gave the banks $30 billion of taxpayer money lend to small businesses. Congress has helped the banks enough: the time has come to help credit unions serve their business-owning members. • We encourage Congress to include language increasing the credit union member business lending cap in upcoming legislation. Credit Unions Are Well Capitalized But Face Statutory Restrictions that Limit the Ability to Raise Capital and Remain Exceptionally Safe and Sound • The credit union system is generally well capitalized, and most credit unions have continued to lend to their members when the banks have pulled back credit access from their customers. While the credit union movement as a whole remains very well capitalized, a number of credit unions are close to or past the prompt corrective action (PCA) triggers as a result of the financial crisis. These credit unions will need to raise capital at a time when the outlook for credit union net income – the source of retained earnings – is not particularly strong. • By law – not regulation, as is the case for other insured depositories – credit unions must maintain a 7% net worth (or leverage) ratio in order to be considered “well capitalized.” The law also specifies that only retained earnings constitute net worth for credit unions. All other U.S. depository institutions and most credit unions in other countries are permitted various forms of alternate or supplemental capital. • Credit unions and their members face a protracted period of reduced member service, disadvantageous member pricing, and very slow growth, unless Congress allows credit unions to access supplemental forms of capital. • Supplemental credit union capital will reinforce and strengthen the regulatory incentive for credit unions to remain exceptionally safe and sound, and, will allow credit unions to do even more to serve all their members. This would benefit all credit unions whether they use the authority or not.


LEGISLATIVE BRIEFING PAPER CREDIT UNIONS ARE THE BEST WAY FOR CONSUMERS TO CONDUCT THEIR FINANCIAL SERVICES Credit unions are not-for-profit financial cooperatives. Overall, nearly 92 million U.S. consumers are member-owners of, and receive all or part of their financial services from the nation's 7,600 credit unions. Credit unions are a small, but constant and stable presence in the financial services industry. Credit unions hold about 6.7% of household financial assets, up from about 5.5% in two decades. As democratically owned and controlled institutions, credit unions take pride in their "people helping people" philosophy. Credit union boards of directors are elected by members; each member has an equal vote, regardless of how much he or she has on deposit. Credit unions have no outside stockholders, so after reserves are set aside, earnings are returned to members in the form of dividends on savings, lower loan rates or additional services. Because a credit union is in business to serve its members and not to make profit for anonymous stockholders credit unions provide superior member service and consistently rank first among financial institutions in consumer satisfaction. Credit unions primarily engage in consumer, residential real estate and small business lending with their members. Credit unions did not engage in the activity that caused the financial crisis, and they did not need to be bailed out, like for-profit banks. While credit unions were affected by the crisis, credit union asset quality remains very high in the current shaky market with first mortgage delinquencies at 2.29% and overall loan delinquencies at 1.75% at the end of the third quarter 2010. Credit union capital is equal to 10% of total assets (far above the 7% regulatory minimum to be considered "well capitalized"). All Consumers Benefit by Having Credit Unions in the Marketplace Benefits to Credit Union Members Lower interest rates and fees than for-profit banks Higher rates of return on deposits than for-profit banks One member, one vote gives credit union members a voice in credit union operations Great service from a financial institution that exists to serve members, not enrich shareholders. Benefits to All Consumers The presence of credit unions in a market motivates banks to keep their rates and fees competitive, benefiting all consumers. Credit unions provide stability to the financial industry. Credit unions did not need a taxpayer bailout because the not-for-profit structure discourages excessive risk-taking.


Alabama Credit Union Fact Sheet ($ in Millions)

Institutions Chartered in Alabama Credit Unions Number of CUs Federally chartered State chartered

Banks/S&Ls/Savings Banks 126 61 65

Credit union market share of CU/Bank assets Average size Total assets

6.3% $120.5 $15,176.7

Members Membership/Population

1,736,893 37.1%

Estimated federal income tax

$24.4

Number of Banks

144

Subchapter S

44

Bank market share of CU/Bank assets Average size Total assets Subchapter S assets

93.7% $1,575.6 $226,886.2 $7,545.6

Estimated Sub S foregone federal tax revenue Estimated federal income tax Stockholder dividends Estimated directors fees

$4.3 -$350.3 $45.3 $20.0

Average Interest Rates One-year certificate Money market accounts Auto loans Classic credit card

1.23% 1.17% 4.50% 11.33%

Average Interest Rates One-year certificate Money market accounts Auto loans Classic credit card

0.89% 0.68% 6.42% 13.43%

Alternative market share calculation Total deposits Market share of deposits

$13,292 13.9%

Alternative market share calculation Total deposits in institutions w/ branches in state Market share of deposits

$82,059 86.1%

National Credit Unions Number of CUs Federally chartered State chartered

Banks/S&Ls/Savings Banks 7,437 4,552 2,885

Credit union market share of CU/Bank assets Average size Total assets

6.4% $123.3 $916,713.3

Members Membership/Population

91,492,527 29.8%

Estimated federal income tax

Average Interest Rates One-year certificate Money market accounts Auto loans Classic credit card

$617.7

0.99% 0.80% 4.39% 11.71%

Number of Banks

7,747

Subchapter S

2,426

Bank market share of CU/Bank assets Average size Total assets Subchapter S assets

Estimated Sub S foregone federal tax revenue Estimated federal income tax Stockholder dividends Estimated directors fees Average Interest Rates One-year certificate Money market accounts Auto loans Classic credit card

Source: All financial data is September 2010. Average interest rates are as of September 30, 2010 source: Datatrac. Population taken from Census Bureau Estimates for July 2010. Credit union data is from NCUA; Bank data is from FDIC, directors fees were estimated using the America's Community Bankers Compensation Survey Results.

Produced by CUNA's Economics & Statistics Department.

93.6% $1,716.6 $13,298,492.9 $499,961.7

$1,342.2 $36,784.6 $30,604.1 $1,156.5

0.80% 0.61% 5.68% 12.22%


Florida Credit Union Fact Sheet ($ in Millions)

Institutions Chartered in Florida Credit Unions Number of CUs Federally chartered State chartered

Banks/S&Ls/Savings Banks 174 98 76

Credit union market share of CU/Bank assets Average size Total assets

21.6% $242.4 $42,180.1

Members Membership/Population

4,555,968 24.7%

Estimated federal income tax

-$48.1

Number of Banks

253

Subchapter S

49

Bank market share of CU/Bank assets Average size Total assets Subchapter S assets

78.4% $603.9 $152,790.6 $10,470.0

Estimated Sub S foregone federal tax revenue Estimated federal income tax Stockholder dividends Estimated directors fees

Average Interest Rates One-year certificate Money market accounts Auto loans Classic credit card

0.78% 0.66% 4.15% 12.91%

Average Interest Rates One-year certificate Money market accounts Auto loans Classic credit card

Alternative market share calculation Total deposits Market share of deposits

$36,423 8.2%

Alternative market share calculation Total deposits in institutions w/ branches in state Market share of deposits

-$31.0 $107.2 $50.1 $42.6

0.67% 0.66% 4.92% 10.32%

$410,145 91.8%

National Credit Unions Number of CUs Federally chartered State chartered

Banks/S&Ls/Savings Banks 7,437 4,552 2,885

Credit union market share of CU/Bank assets Average size Total assets

6.4% $123.3 $916,713.3

Members Membership/Population

91,492,527 29.8%

Estimated federal income tax

Average Interest Rates One-year certificate Money market accounts Auto loans Classic credit card

$617.7

0.99% 0.80% 4.39% 11.71%

Number of Banks

7,747

Subchapter S

2,426

Bank market share of CU/Bank assets Average size Total assets Subchapter S assets

Estimated Sub S foregone federal tax revenue Estimated federal income tax Stockholder dividends Estimated directors fees Average Interest Rates One-year certificate Money market accounts Auto loans Classic credit card

Source: All financial data is September 2010. Average interest rates are as of September 30, 2010 source: Datatrac. Population taken from Census Bureau Estimates for July 2010. Credit union data is from NCUA; Bank data is from FDIC, directors fees were estimated using the America's Community Bankers Compensation Survey Results.

Produced by CUNA's Economics & Statistics Department.

93.6% $1,716.6 $13,298,492.9 $499,961.7

$1,342.2 $36,784.6 $30,604.1 $1,156.5

0.80% 0.61% 5.68% 12.22%


ËòÍò Ý®»¼·¬ ˲·±² Ѫ»®ª·»© Ó»³¾»®óÑ©²»¼ô Ò±¬óÚ±®óЮ±º·¬ô Ú·²¿²½·¿´ ݱ±°»®¿¬·ª»ß- ±º Í»°¬»³¾»® îðïðò ͱ«®½»-æ ÒÝËßô ÝËÒßò

Ò«³¾»® ±º ËòÍò Ý®»¼·¬ ˲·±²-æ ݱ²-«³»® Ó»³¾»®óÑ©²»®-æ ß--»¬-æ Ô±¿²-æ ݱ²-«³»® Í¿ª·²¹-æ Ý¿°·¬¿´ ¬± ß--»¬-æ

ݱ²-«³»®- Í¿ª» Þ·¹ ¿¬ Ý®»¼·¬ ˲·±²-

Ý®»¼·¬ ˲·±²- Ø¿ª» ݱ²¬·²«»¼ ¬± Í»®ª» Þ±®®±©»®- ß- Ѭ¸»® Ô»²¼»®- Ы´´»¼ Þ¿½µ

ߪ»®¿¹» ß²²«¿´ Í¿ª·²¹- ±² Ý®»¼·¬ ˲·±² Ô±¿² Ю±¼«½¬øͱ«®½»æ ײº±®³¿ô ½¿´½«´¿¬»¼ ¿- ¬¸» ¼·ºº»®»²½» ·² ¬±¬¿´ °¿§³»²¬- «-·²¹ ¿ª»®¿¹» ·²¬»®»-¬ ®¿¬»-÷

Ù®±©¬¸ Í·²½» Þ»¹·²²·²¹ ±º λ½»--·±²æ ïîñðéóçñïð øͱ«®½»æ ÚÜ×Ýô ÒÝËßô ÝËÒß Ð±´·½§ ß²¿´§-·-÷

Þ¿²µ-

üîéêòèï

íçòîû

Ý®»¼·¬ ˲·±²-

éôëëê çî ³·´´·±² üçîð ¾·´´·±² üëéë ¾·´´·±² üéçï ¾·´´·±² ïðû

üïèðòçë

ïìòìû

éòêû üïîçòðð üéíòîè

óêòëû

óïðòðû

üíïòíì

óïèòìû λ¿´ Û-¬¿¬» Ô±¿²-

Þ«-·²»-- Ô±¿²-

̱¬¿´ Ô±¿²-

Ó«½¸ ͳ¿´´»® Ü»´·²¯«»²½§ ײ½®»¿-»- ¿¬ Ý®»¼·¬ ˲·±²Ô±¿² Ü»´·²¯«»²½§ כּøͱ«®½»æ ÚÜ×Ýô ÒÝËßô ÝËÒß Ð±´·½§ ß²¿´§-·-÷ ͱ«®½»æ ÚÜ×Ýô ÒÝËßô ¿²¼ëòíéû ÝËÒß ÛúÍò îðïð ®»-«´¬- ¿®» ¿²²«¿´·¦»¼

Ò»© Ý¿®æ üíðôðððñë Ë-»¼ Ý¿®æ üîðôðððñì д¿¬·²«³ Ý®»¼·¬ Ý¿®¼æ ر³» ˲-»½«®»¼ л®-±²¿´ Ç® Ì»®³ Ç® Ì»®³ üïðôððð Û¯«·¬§æüëðôðððñèðû Ô±¿²æüëôðððñì Ç® ÔÌÊñïë Ç® Ì»®³ Ì»®³

Ý®»¼·¬ ˲·±²-æ ß Î»½±®¼ ±º Í¿º» Ô»²¼·²¹ Ô±¿² ݸ¿®¹»óѺº- ó ¬¸®±«¹¸ Í»°¬»³¾»® îðïð ß²²«¿´·¦»¼ øͱ«®½»æ ÚÜ×Ýô ÒÝËßô ÝËÒß Ð±´·½§ ß²¿´§-·-÷ ïòïëû

ëòïîû

̱¬¿´ Ô±¿²-

îòëçû ðòêëû

îòçíû

Þ«-·²»-- Ô±¿²-

ïòèíû

ïòèîû

ïòìðû

ïòíéû ðòçíû

ïòéëû

Ý®»¼·¬ ˲·±²-

Þ¿²µ-

ðòêìû λ¿´ Û-¬¿¬» Ô±¿²-

ïòçîû

Þ¿²µîððé

Ý®»¼·¬ ˲·±²îððè

îððç

Í»°¬ îðïð

ïòéêû ݱ²-«³»® Ô±¿²-

êòìîû


The Value of the Credit Union Tax Status Did You Know? • • •

Congress has provided the credit union federal tax-exemption because of the not-for-profit, cooperative structure of credit unions, and the special mission credit unions have to serve consumers. The credit union tax status is not based on the size of credit unions or the products and services that they offer; it is based on the credit union structure. This rationale for the tax-exempt status has been ratified several times by Congress.

Our Ask: •

Members of Congress should be outspoken in their support for the credit union tax status, and should not use the tax status as a mechanism to prevent improvements to the Federal Credit Union Act.

What are the Policy Implications? • There is no hiding the fact that the Federal government faces a significant budget crisis. A Presidential Commission recently recommended eliminating all tax expenditures. • The credit union tax status benefits all consumers – credit union members and those who are not credit union members. While the credit union tax expenditure “costs” the federal government approximately $600 million annually, consumers benefit to the tune of $10 billion annually because credit unions are tax-exempt. • Credit union competition helps keep bank and savings and loan prices lower. For example, credit unions offering credit cards now charge lower interest rates than most other lenders (on average by two or three percentage points). Imagine how expensive other lenders would make credit cards, or auto loans, if credit union competition did not exist! • Further, the existence of credit unions in the marketplace provides consumers with access to consumer-friendly financial services. If credit unions were taxed, product pricing would increase, and, as a result, there would be little incentive for a cooperative-financial institution to exist. This would leave low to moderate income consumers seeking financial services either at for-profit banks (more expensive products) or predatory lenders. The motives of credit unions are different because they are not-for-profit. Credit unions are in business for their members, not to make profits for anonymous shareholders. What are the Implications for Credit Unions? • Eliminating the credit union tax status eliminates credit unions. It is that simple, and given what our economy has just been through, that would be a shame for consumers. o Even though credit unions were affected by the financial crisis, none of the problems that precipitated the crisis were caused by credit unions. This is because the motives of credit unions and the incentive structures are different from for-profit financial institutions. If credit unions are taxed, there is no incentive for credit unions to remain not-for-profit; they will convert to banks; and our economy will lose the only sector of the financial industry that is not driven by profit, but rather driven by a dedication to serve its members. o Credit unions are people helping people; unlike the banks, they are not people using people to generate profits for shareholders.

Credit unions are the best way for consumers to conduct their financial services. Taxing credit unions takes this option away from consumers, and will drive up the cost of financial services for all.

Prepared by CUNA Legislative Affairs

February 2011


Interchange Fees Did You Know? •

Interchange fees are not paid to Visa or MasterCard. Interchange fees are paid by merchants to credit unions and banks that issue debit and credit cards, and represent the merchants’ fair share of the cost of the payment card system. Even though Congress exempted most credit unions from the recently proposed cap on debit interchange fees, these rules will affect how credit unions serve their members, because the law and rules do not give the Federal Reserve the authority to enforce the exemption. As a result, the new rules will directly and indirectly affect credit unions and drive up the cost of providing checking accounts and debit cards to credit union members.

Our Ask: •

Congress needs to stop, study and start over. Members of Congress should support legislation that stops the implementation of the Federal Reserve debit interchange regulation so that the impact on consumers and small issuers can be studied, and so Congress can start over.

What are the Policy Implications? • Credit unions issue debit cards and credit cards to their members. Interchange revenue from the use of these cards is vital to credit unions to support the expense of card programs. Interchange fees allow business costs, including operating expenses, fraud risk management, and the risk of consumer nonpayment, to be shared by the payments participants. •

As part of the Dodd-Frank Act, Congress enacted provisions that regulate the debit interchange rates and give merchants more control over a consumer’s use of debit cards and credit cards at the point of sale and the route through which the transaction is processed. These provisions directed the Fed to determine a debit interchange rate taking into consideration a limited set of factors. As a result of this constraint, the Fed set a capped rate—12 cents per transaction—that is significantly lower than the cost of providing debit services and does not reflect a percentage of the total transaction exposure to the credit union.

Specifically, the Dodd-Frank language prohibits the Federal Reserve from taking into consideration all of the costs of the payment system when regulating the debit interchange fee to establish a debit rate that is “reasonable and proportional” to the “incremental” cost of the individual transaction.

What are the Implications for Consumers? • Increased costs for consumers: For credit union members, government intervention in debit interchange fees will result in cost-shifting from merchants to consumers and increased fees for consumers to obtain debit cards. Interchange enables and supports the convenience of debit cards as a valuable feature of a checking account. •

Decreased competition for consumers: Debit cards obtained through credit unions are valued by consumers looking for a full service checking account. By managing a debit card through a credit union, a member is able to effectively access and manage their account. Interchange enables credit unions of all sizes to issue debit cards for its members.

Unfair disruption of marketplace: The debit interchange provision unfairly disrupts a functioning marketplace by requiring credit unions and banks to accept a capped rate for service that is less than the cost of providing the service. The reduction in the merchants’ debit interchange will shift to the consumers; resulting in possible higher fees, usage restrictions, and reduced access to a convenient and cost-effective payment card system. Prepared by CUNA Legislative Affairs

February 2011


Credit Union Small Businesses Lending Did You Know? •

Credit unions have been making member-business loans (MBLs) since their inception in the early 1900s. In the first 90 years of their existence, there was no MBL cap on credit unions. The current cap is an arbitrary limit imposed by Congress in the Credit Union Membership Access Act of 1998 (CUMAA).

In the next year, credit unions could lend small businesses an additional $10 billion, helping them to create over 100,000 new jobs if Congress increases the statutory cap on credit union business lending. This can be done without costing the taxpayers a dime and without increasing the size of government. Unlike banks, credit unions do not need taxpayer assistance to encourage them to do more business lending; credit unions only need authority from Congress.

Our Ask: •

Congress should enact legislation which increases the credit union member business lending cap from 12.25% of assets to 27.5% for well-capitalized credit unions and adds significant safeguards to ensure that qualifying credit unions do this additional lending safely and soundly. This approach has been endorsed by the Obama administration.

What are the Policy Issues? • America’s small businesses are the engine of growth of our nation’s economy. The effects of the financial crisis of the past few years have spread to all types of lending, resulting in a reduction in the availability of business credit. •

The cap on credit union member business lending (currently 12.25% of the total assets of the credit union) has no economic, safety and soundness or historical rationale. o Credit unions have been lending to their business-owning members for a century. o Credit union loan losses (net charge off rates) for business loans are much lower than those for business loans made by banks.

At a time when banks are withdrawing credit from America’s small businesses, credit unions have actually been expanding credit to small businesses, but with more credit unions approaching the cap, this growth is threatened. It makes economic sense to restore credit unions’ full ability to lend to their business-owning members.

What are the Implications for Small Businesses? • Most credit union loans are what are generally considered small business loans. In fact, the average credit union business loan is approximately $220,000. Therefore, when a credit union lends to one of its business owning members, that money stays in the community the credit union serves and helps employ area residents. •

Banks have been reducing credit availability, and even after receiving $30 billion of taxpayer money, banks still are not meeting the demand for small business loans. The banks’ failure to lend to small businesses perpetuates the economic crisis. Letting credit unions do more lending will put money into local communities and may provide banks with incentive to do more lending themselves.

Prepared by CUNA Legislative Affairs

January 2011


Ý®»¼·¬ ˲·±² Ó»³¾»® Þ«-·²»-- Ô»²¼·²¹ Ѫ»®ª·»© ß- ±º Í»°¬»³¾»® îðïðò ͱ«®½»-æ ÚÜ×Ýô ÒÝËßô ÝËÒßò

Ò¿¬·±²¿´ Ѫ»®ª·»© Ò«³¾»® ±º ÝË- ©·¬¸ ÓÞÔ̱¬¿´ ÝË ÓÞÔ- ±«¬-¬¿²¼·²¹ ߪ»®¿¹» -·¦» ±º ÝË ÓÞÔÓÞÔ-æ û ±º ß--»¬- ¿¬ ±ºº»®·²¹ ÝË-

îôîëç üíèôïíèôëëèôìçî üîîðôïêè ëû

ïî Ó±²¬¸ Ô±¿² Ù®±©¬¸æ Ý®»¼·¬ «²·±² ÓÞÔ-ö ݱ³³»®½·¿´ ¾¿²µ ¾«-·²»-- ´±¿²Ý±³³«²·¬§ ¾¿²µ ¾«-·²»-- ´±¿²-

éû óèû óçû

ß´¿¾¿³¿ Ò«³¾»® ±º ÝË- ©·¬¸ ÓÞÔ̱¬¿´ ÝË ÓÞÔ- ±«¬-¬¿²¼·²¹ ߪ»®¿¹» -·¦» ±º ÝË ÓÞÔÓÞÔ-æ û ±º ß--»¬- ¿¬ ±ºº»®·²¹ ÝË-

ìî üìîèôçíèôêçî üïëçôðìí ìû

ïî Ó±²¬¸ Ô±¿² Ù®±©¬¸æ Ý®»¼·¬ «²·±² ÓÞÔ- ·² §±«® -¬¿¬» ݱ³³»®½·¿´ ¾¿²µ ¾«-·²»-- ´±¿²- ·² §±«® -¬¿¬»

èû óìû

öÓÞÔ- ¿®» ¬¸» º¿-¬»-¬ó¹®±©·²¹ -»¹³»²¬ ±º ÝË ´±¿² °±®¬º±´·±-

ÝË Þ«-·²»-- Ô»²¼·²¹æ Í¿º» ú ͱ«²¼

ߪ»®¿¹» ß--»¬ Í·¦» ±º ÓÞÔ ÝË-

Þ«-·²»-- Ô±¿² ß--»¬ Ï«¿´·¬§ ݱ³°¿®·-±²-

̸±-» Ò»¿® Ý¿° Ì»²¼ ¬± ¾» Ô¿®¹»® ÝË-

ïççé ïççè ïççç îððð îððï îððî îððí îððì îððë îððê îððé îððè îððç íÏïð ߪ¹ò -·²½» ùçé

Ò»¬ ݸ¿®¹»±ººÝ±³³»®½·¿´ Þ¿²µ Ý®»¼·¬ ˲·±² ݱ³³»®½·¿´ ú ÓÞÔײ¼«-¬®·¿´ Ô±¿²ðòïèû ðòîèû ðòðèû ðòìíû ðòïîû ðòëéû ðòðëû ðòðïû ðòïðû ïòìíû ðòðçû ïòéêû ðòðèû ïòîêû ðòïðû ðòëðû ðòðëû ðòîéû ðòðèû ðòíðû ðòðçû ðòëîû ðòííû ïòðïû ðòëéû îòêîû ðòêëû ïòèíû ðòïèû

ðòçïû

ͱ«®½»æ ÚÜ×Ýô ÒÝËßô ¿²¼ ÝËÒß ÛúÍò îðïð ®»-«´¬- ¿®» ¿²²«¿´·¦»¼

ÓÞÔ- ¿- ¿ û ±º ß--»¬âðòðû ¬± ëòðû ëòðû ¬± éòëû éòëû ¬± ïðòðû ïðòðû ¬± ïîòëû ïîòëûõ

Ò«³¾»® ±º ÝËïôëêð îîç ïéì ïëï ïìé

ߪ»®¿¹» ß--»¬ Í·¦» üíðïôìîéôëïî üíéçôïîìôèéé üìïîôîêçôðèê üìííôîëçôçìê üîèðôèçêôïêê

˲«-»¼ Ý¿°¿½·¬§ ˲«-»¼ Ý¿°¿½·¬§ ˲¼»® Ý«®®»²¬ Ý¿° ׺ Ý¿° ã îëû üëðôìêèôéëéôéèî üïîîôïéèôíêîôèçç üëôíïîôðêðôéîé üïèôëëîôðìçôîêï üîôìîëôçðêôéëë üïíôíêëôìêêôçëî üééïôèíðôíìê üïðôéìèôéîíôéëé

ͱ«®½»æ ÒÝËßô ¿²¼ ÝËÒß ÛúÍò

Ó¿²§ ½®»¼·¬ «²·±²- ¸¿ª» ²±¬ »²¬»®»¼ ¬¸» ÓÞÔ ¿®»²¿ ¾»½¿«-» ¬¸» ïîòîëû ½¿° °®»ª»²¬¬¸»³ º®±³ »¿®²·²¹ -«ºº·½·»²¬ ·²½±³» ¬± ½±ª»® -¬¿®¬ó«° ¿²¼ ±²¹±·²¹ °®±¹®¿³ ½±-¬-ò

λ³±ª·²¹ ÓÞÔ ïîòîëû ½¿°æ ö É·´´ °®±¼«½» ¿² »-¬·³¿¬»¼ üïî ¾·´´·±² ·² ²»© ÓÞÔ- ·² ¬¸» º·®-¬ §»¿® Ò»© ÓÞÔ- ·² ¬¸» º·®-¬ §»¿® ·² §±«® -¬¿¬»æ üïèíôêêïôìïì ö É·´´ °®±¼«½» ¿² »-¬·³¿¬»¼ ïíìôððð ²»© ¶±¾- «-·²¹ ÝÛß ¶±¾ ³«´¬·°´·»® Ò«³¾»® ±º ²»© ¶±¾- ·² §±«® -¬¿¬»æ ïôççê Ò± ½±-¬ ¬± ¬¿¨°¿§»®-


Ý®»¼·¬ ˲·±² Ó»³¾»® Þ«-·²»-- Ô»²¼·²¹ Ѫ»®ª·»© ß- ±º Í»°¬»³¾»® îðïðò ͱ«®½»-æ ÚÜ×Ýô ÒÝËßô ÝËÒßò

Ò¿¬·±²¿´ Ѫ»®ª·»© Ò«³¾»® ±º ÝË- ©·¬¸ ÓÞÔ̱¬¿´ ÝË ÓÞÔ- ±«¬-¬¿²¼·²¹ ߪ»®¿¹» -·¦» ±º ÝË ÓÞÔÓÞÔ-æ û ±º ß--»¬- ¿¬ ±ºº»®·²¹ ÝË-

îôîëç üíèôïíèôëëèôìçî üîîðôïêè ëû

ïî Ó±²¬¸ Ô±¿² Ù®±©¬¸æ Ý®»¼·¬ «²·±² ÓÞÔ-ö ݱ³³»®½·¿´ ¾¿²µ ¾«-·²»-- ´±¿²Ý±³³«²·¬§ ¾¿²µ ¾«-·²»-- ´±¿²-

éû óèû óçû

Ú´±®·¼¿ Ò«³¾»® ±º ÝË- ©·¬¸ ÓÞÔ̱¬¿´ ÝË ÓÞÔ- ±«¬-¬¿²¼·²¹ ߪ»®¿¹» -·¦» ±º ÝË ÓÞÔÓÞÔ-æ û ±º ß--»¬- ¿¬ ±ºº»®·²¹ ÝË-

êç üïôïéíôçëìôðìî üíêïôëëð íû

ïî Ó±²¬¸ Ô±¿² Ù®±©¬¸æ Ý®»¼·¬ «²·±² ÓÞÔ- ·² §±«® -¬¿¬» ݱ³³»®½·¿´ ¾¿²µ ¾«-·²»-- ´±¿²- ·² §±«® -¬¿¬»

îû óìû

öÓÞÔ- ¿®» ¬¸» º¿-¬»-¬ó¹®±©·²¹ -»¹³»²¬ ±º ÝË ´±¿² °±®¬º±´·±-

ÝË Þ«-·²»-- Ô»²¼·²¹æ Í¿º» ú ͱ«²¼

ߪ»®¿¹» ß--»¬ Í·¦» ±º ÓÞÔ ÝË-

Þ«-·²»-- Ô±¿² ß--»¬ Ï«¿´·¬§ ݱ³°¿®·-±²-

̸±-» Ò»¿® Ý¿° Ì»²¼ ¬± ¾» Ô¿®¹»® ÝË-

ïççé ïççè ïççç îððð îððï îððî îððí îððì îððë îððê îððé îððè îððç íÏïð ߪ¹ò -·²½» ùçé

Ò»¬ ݸ¿®¹»±ººÝ±³³»®½·¿´ Þ¿²µ Ý®»¼·¬ ˲·±² ݱ³³»®½·¿´ ú ÓÞÔײ¼«-¬®·¿´ Ô±¿²ðòïèû ðòîèû ðòðèû ðòìíû ðòïîû ðòëéû ðòðëû ðòðïû ðòïðû ïòìíû ðòðçû ïòéêû ðòðèû ïòîêû ðòïðû ðòëðû ðòðëû ðòîéû ðòðèû ðòíðû ðòðçû ðòëîû ðòííû ïòðïû ðòëéû îòêîû ðòêëû ïòèíû ðòïèû

ðòçïû

ͱ«®½»æ ÚÜ×Ýô ÒÝËßô ¿²¼ ÝËÒß ÛúÍò îðïð ®»-«´¬- ¿®» ¿²²«¿´·¦»¼

ÓÞÔ- ¿- ¿ û ±º ß--»¬âðòðû ¬± ëòðû ëòðû ¬± éòëû éòëû ¬± ïðòðû ïðòðû ¬± ïîòëû ïîòëûõ

Ò«³¾»® ±º ÝËïôëêð îîç ïéì ïëï ïìé

ߪ»®¿¹» ß--»¬ Í·¦» üíðïôìîéôëïî üíéçôïîìôèéé üìïîôîêçôðèê üìííôîëçôçìê üîèðôèçêôïêê

˲«-»¼ Ý¿°¿½·¬§ ˲«-»¼ Ý¿°¿½·¬§ ˲¼»® Ý«®®»²¬ Ý¿° ׺ Ý¿° ã îëû üëðôìêèôéëéôéèî üïîîôïéèôíêîôèçç üëôíïîôðêðôéîé üïèôëëîôðìçôîêï üîôìîëôçðêôéëë üïíôíêëôìêêôçëî üééïôèíðôíìê üïðôéìèôéîíôéëé

ͱ«®½»æ ÒÝËßô ¿²¼ ÝËÒß ÛúÍò

Ó¿²§ ½®»¼·¬ «²·±²- ¸¿ª» ²±¬ »²¬»®»¼ ¬¸» ÓÞÔ ¿®»²¿ ¾»½¿«-» ¬¸» ïîòîëû ½¿° °®»ª»²¬¬¸»³ º®±³ »¿®²·²¹ -«ºº·½·»²¬ ·²½±³» ¬± ½±ª»® -¬¿®¬ó«° ¿²¼ ±²¹±·²¹ °®±¹®¿³ ½±-¬-ò

λ³±ª·²¹ ÓÞÔ ïîòîëû ½¿°æ ö É·´´ °®±¼«½» ¿² »-¬·³¿¬»¼ üïî ¾·´´·±² ·² ²»© ÓÞÔ- ·² ¬¸» º·®-¬ §»¿® Ò»© ÓÞÔ- ·² ¬¸» º·®-¬ §»¿® ·² §±«® -¬¿¬»æ üëìíôîèîôéðë ö É·´´ °®±¼«½» ¿² »-¬·³¿¬»¼ ïíìôððð ²»© ¶±¾- «-·²¹ ÝÛß ¶±¾ ³«´¬·°´·»® Ò«³¾»® ±º ²»© ¶±¾- ·² §±«® -¬¿¬»æ ëôçðë Ò± ½±-¬ ¬± ¬¿¨°¿§»®-


The Need for Supplemental Capital Did You Know? •

• • •

Credit unions remain the most highly regulated and restricted of all insured financial institutions and stand out as the only depository institutions in the United States without the ability to issue some form of capital instruments to augment retained earnings to build capital. Credit unions historically have had the lowest default/delinquency rates in virtually all categories of loans and have maintained average net worth ratios well in excess of those held by banks. By law – not regulation, as is the case for other insured depositories – credit unions must maintain a 7% net worth (or leverage) ratio in order to be considered “well capitalized.” The law also specifies that only retained earnings constitute net worth for credit unions. All other U.S. depository institutions and most credit unions in other countries are permitted various forms of alternate or supplemental capital.

Our Ask: •

Congress should modify the definition of credit union net worth to include supplemental forms of capital for credit unions.

What are the Policy Implications? • The recent financial crisis led to a substantial drop in the average credit union capital ratio – from 11.4% at the end of 2007 to 9.9% as of the end of 2009. •

While the credit union movement as a whole remains very well capitalized, a number of credit unions are close to or past the prompt corrective action (PCA) triggers as a result of the financial crisis. These credit unions will need to raise capital at a time when the outlook for credit union net income – the source of retained earnings – is not particularly strong.

Long term influences on credit union net income are not promising. Net interest income, essentially the difference between what credit unions earn in interest on loans and investments and what they pay in interest and dividends on savings has been on a long-term downtrend caused by intense competition on both sides of the balance sheet. This pressure is unlikely to abate significantly going forward. In addition, interchange income, an important source of non-interest revenue, is under political pressure and is likely to diminish.

What are the Implications for Credit Unions? • Capital is king for all financial institutions. As credit unions battered by the financial crisis recover in the coming few years, rebuilding capital ratios will be paramount. •

Without access to alternate capital, and with earnings power facing headwinds, credit unions and their members will face a protracted period of reduced member service, disadvantageous member pricing, and very slow growth, unless Congress allows credit unions to access supplemental forms of capital.

Supplemental credit union capital will reinforce and strengthen the regulatory incentive for credit unions to remain exceptionally safe and sound, and, will allow credit unions to do even more to serve all their members.

Prepared by CUNA Legislative Affairs

January 2011

/GAC+Briefing+Book  

http://www.lscu.coop/content/download/34776/402238/GAC+Briefing+Book.pdf

Read more
Read more
Similar to
Popular now
Just for you