NEW YORK (2/4/10)--The objections of the Credit Union National Association (CUNA) to the Obama administration's plan to pump $30 billion into community banks for business lending while snubbing credit unions' efforts to assist with the recovery were noted in Wednesday's issue of The New York Times.
The president's proposal would use $30 billion of repaid bailout loans to help community banks increase lending to small businesses as part of a broader effort to boost creation of jobs. It doesn't mention credit unions.
The Times reported that the community bankers praised the plan. "But the Credit Union National Association declared itself 'outraged and baffled,' asserting the government could do more without cost ot taxpayers by allowing more business lending by credit unions," the report said.
Indeed CUNA has spoken out on behalf of credit unions on the initiative (News Now Feb. 3). CUNA President/CEO Dan Mica said the proposal is entirely focused on small and community banks, and includes nothing for credit unions.