ICBA Standing Firm in Credit Union Lawsuit

Nov 17, 2016
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Breaking News!

ICBA Standing Firm in Credit Union Lawsuit

ICBA tells court to reject NCUA motion to dismiss commercial lending lawsuit


ICBA has reasserted its challenge to the National Credit Union Administration’s unlawful commercial lending rule. In a vigorous response to the agency’s attempt to evade judicial review, ICBA called on the federal court reviewing the NCUA’s dubious final rule to reject the agency’s motion to dismiss the case.

In the brief, ICBA clearly shows that the association has standing to sue and is in the best position to bring this timely legal challenge on behalf of its members. The brief outlines the tangible financial harm to community banks and local communities caused by the NCUA’s flawed rule. In fact, it includes testimonials from three community bankers and ICBA’s executive vice president and senior regulatory counsel, Christopher Cole, on how widespread the injury has been to ICBA’s membership and how adversely it has affected community bank earnings and valuations.

ICBA’s case notes that the NCUA rule allows tax-exempt credit unions to exceed limits on commercial lending activity established by Congress. Enough is enough—ICBA will not allow the NCUA to unilaterally expand loopholes for the taxpayer-subsidized financial institutions it is supposed to regulate, while sidestepping Congress and putting consumers at risk. Once again, the NCUA has shown that it is captive to the taxpayer-subsidized industry it is charged with regulating.

While ICBA continues to forcefully challenge the NCUA’s rule in court, community bankers who would like to help can contribute to the ICBA Credit Union Litigation Fund. The fund allows community bankers to provide voluntary contributions to ICBA’s lawsuit to help level the playing field with tax-exempt credit unions through the courts.

ICBA has filed suit because it is the right thing to do for community banks, our economy and our nation’s financial services industry. We hope you’ll join ICBA in fighting back against NCUA’s unlawful regulations.

Sincerely,

 

Rebeca and Cam
 
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