The case for Congress staying out of credit union-bank deals

Let’s start with a question: Do community-based financial institutions need more regulation or governmental intervention? My answer — and I suspect your answer — is a resounding no.

Community-based financial institutions are the backbone of America. Their real adversary is made up of two pillars: One is overregulation, and the second is large banks and large non-banks that act like banks (such as Apple, Starbucks and Walmart).

Community banks and credit unions should spend their time and energy coming together to bring change to these impediments and challenges. There is no logical reason for them to waste time, energy and political capital fighting about a voluntary market-based transaction.

It’s also important to think about this issue in the absence of emotion and sensational verbiage. When this topic is discussed you will see exciting words like “tax subsidized,” “takeover of community banks,” “swallowing up community banks” and “unfair competition.”

 

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