CUNA to Obama: Support MBL to Boost Job Creation (Misc News: August 4, 2011)
With President Barack Obama saying that job creation will be his next top priority and some economists suggesting the country could be facing a double-dip recession, CUNA is calling on the president to back member business lending reform for credit unions.
In a letter to the president, CUNA President/CEO Bill Cheney pointed out that credit unions have been serving entrepreneurs for more than a century.
"As the economy continues to recover from the financial crisis, Americans need credit unions now more than ever," Cheney wrote, according to CUNA News Now.
CUNA has said that simply increasing the MBL cap from 12.25 percent to 27.5 percent could pump $13 billion into the economy and create 140,000 jobs – at no cost to taxpayers.
With the fight over the debt ceiling behind him, Obama pledged Tuesday to turn his attention to job creation. He called on Congress to look for ways to encourage companies to boost hiring.
U.S. News & World Report said Tuesday that the economy has barely grown in 2011, according to government figures. Gross Domestic Product growth has been an anemic 1.3 percent, far below the 2 percent economists say is needed to avoid dipping into negative territory.
"We're on a knife edge right now," Justin Wolfers, associate professor of business and public policy at The Wharton School of the University of Pennsylvania, told U.S. News. "We're on the cusp of recession. We maybe already have had one—that's really just one data revision away."
Sen. Mark Udall, D-Colo., and Rep. Ed Royce, R-Calif., have introduced bills that would raise the MBL cap to 27.5 percent of assets.
"On behalf of America's credit unions and their 93 million members, we appreciate your administration's support for this legislation and we encourage you to build that support by calling on Congress to pass this bill when it returns from the August recess," the CUNA letter said.
So far, five Michigan congressmen – Republican Reps. Thaddeus McCotter and Candice Miller and Democratic Reps. Gary Peters, Dale Kildee, John Conyers and Hansen Clarke have signed on as co-sponsors of the MBL legislation. In addition, both Michigan senators, Carl Levin and Debbie Stabenow, have signed on as co-sponsors.
The MCUL has set up a CapWiz action alert so you can take action on this issue. Once you click on the alert and enter your zip code in the space provided, you will see one letter for your representative depending on their co-sponsorship status. Click here to take action on this important legislation. To access talking points and additional information on MBL legislation, including the MCUL's issue brief, click here.