May 28, 2015
In letters to the Illinois members of the U.S. House Ways and Means Committee (Congressmen Danny Davis, Robert Dold, and Peter Roskam), CBAI urges an end to discrimination against community banks from the unwarranted and harmful tax subsidies given to credit unions and the Farm Credit System.
Credit unions and the FCS have long-since strayed from their original statutory missions. The number of credit unions exceeding a billion dollars in assets has grown from eight in 1991 to 229 today. They are larger than 89% of all banks in the country and indistinguishable from tax-paying community banks.The Farm Credit System is now a $282 billion (asset) financial institution, roughly equivalent to the country's 13th largest bank, with significant systemic and bailout risk, and is the only GSE to compete (versus working cooperatively) with community banks.
An end to these highly discriminatory federal tax subsidies will help level the playing field between credit unions, the FCS and tax-paying community banks. Read Letter.