The recent surge in credit union acquisitions of community banks is a disturbing trend that promises a negative impact on taxpayers nationwide, ICBA President and CEO Rebeca Romero Rainey wrote in a new op-ed.
In American Banker, Romero Rainey wrote that large credit unions are increasing their taxpayer-subsidized footprint by buying up smaller, taxpaying community banks. This trend is contributing to banking industry consolidation, reducing tax revenues, and furthering the credit union encroachment into full-service banking, she wrote.
"It’s time for Washington to take action on this unbalanced arrangement and join many other countries around the world in leveling the financial services sector’s tax and regulatory responsibilities," she wrote.
The op-ed follows last week's ICBA call for Congress to investigate the National Credit Union Administration's role in the taxi medallion scandal exposed by The New York Times, in which irresponsible lending dominated by half a dozen credit unions led to financial ruin for thousands of families as well as a spate of tragic taxi driver suicides.
Read Romero Rainey's Op-Ed
View ICBA Call for NCUA Investigation