Cheney Testifying on Bankers Bill (Misc News: November 16, 2011)
In a rare move, CUNA President/CEO Bill Cheney will have the opportunity to tell Congress what the credit union community thinks of a bankers’ bill.
Cheney is set to testify at 2 p.m. before a joint hearing of the House Financial Services Committee’s Subcommittee on Capital Markets and Government Sponsored Enterprises and Subcommittee on Financial Institutions and Consumer Credit.
The hearing will focus on the Communities First Act (H.R. 1697), would give regulatory and tax relief to banks by expanding the ability of certain banks to incorporate under Subchapter S of the Internal Revenue Code.
While representatives from the banking industry are typically present and give testimony at most hearings on legislation that impacts credit unions, both CU Times and CUNA News Now report that this is one of the first times credit unions have been invited to testify on a bill the bankers are backing.
CUNA said Cheney will read from prepared comments, stressing that the same bank representatives who are pushing to increase the bank tax advantages under Subchapter S also are working to impose additional taxes on credit unions. He’s expected to testify that when banks oppose credit union priorities, including the push to raise the member business lending cap, it hurts consumers and small businesses across the country.
NAFCU President/CEO Fred Becker is also expected to testify, along with John Klebba, president/CEO of Legends Bank of Linn, Mo. on behalf of the American Bankers Association; Salvatore Marranca, president/CEO of Cattaraugus County (N.Y.) Bank and chairman of the Independent Community Bankers of America, and George Washington University Law Professor Arthur E. Wilmarth, Jr.
The bill is sponsored by Rep. Blaine Luetkemeyer, R-Mo., and has 47 cosponsors, including House Financial Services Committee Chairman Spencer Bachus, R-Ala. A companion bill has been introduced by Sen. Jerry Moran, R-Kan.
To view the text of Bill Cheney's testimony, click here.