Pub. 4 2016 Issue 3

18 The Community Banker www.mibonline.org T he Independent Commu- nity Bankers of America didn’t waste any time in getting back to business in Washington following the sum- mer recess. Within 48 hours of the Labor Day holiday, ICBA an- nounced a labor all its own—a lawsuit against the National Credit Union Administration for an unlawful rulemaking allow- ing tax-exempt credit unions to exceed the strict commercial lending limits set by Congress. Since the wool was never pulled over our eyes, we community bankers see the NCUA’s final rule for what it is— a backdoor way to dramatically expand lending loopholes for tax-exempt credit unions while relaxing regulatory oversight. Leave it to ICBA to say what community bankers are think- ing—enough is enough! The credit union power grab must stop! It’s high time that we have a level regulatory playing field for community banks, credit unions and other financial services providers. ICBA’s lawsuit puts that message center stage, and people are listening. With a bevy of widespread media coverage on the lawsuit to feedback from community bankers from across the coun- try—we are seeing that this lawsuit has struck a deep chord. And why wouldn’t it? Not only does the NCUA’s member business lending plan place undue risk on U.S. taxpayers and expand govern- ment-sponsored advantages for credit unions, it also jeopardizes the safety and soundness of federally insured credit unions. The NCUA’s rule is just anoth- er example of the agency’s continued agenda to sidestep Congress to serve as the tax-ex- empt credit union industry’s regulatory “rubber stamp.” A prime example of this rub- ber stamping is the proposed NCUA separate field-of-mem - bership rule that would signifi - cantly expand the definition of “well-defined local community,” which by law limits the territory a community-based credit union can serve, to in- clude any congressional district. This extension would allow community credit unions in each of seven states—Montana, Alaska, Delaware, North Dakota, South Dakota, Vermont and Wyoming—to serve the entire state, making a mockery of the term “local.” We community bankers take the word “local” to heart. It’s who we are, what we do and the philosophy upon which our businesses are built. Anything that jeopardizes that term should be evaluated and stud- ied carefully. It’s yet another red flag from the credit unions. We’ll add it to the pile of many, but rest assured that ICBA is doing something about it. ICBA filed suit in federal court against the NCUA because it is the right thing to do for com- munity banks, our economy and our nation’s financial services industry. Please join us in sup- porting this effort by spreading the word. Rebeca Romero Rainey is ICBA chairman and the chairman and CEO of Centinel Bank of Taos, in Taos, NM From the Chairman STOP THE SIDESTEPPING By Rebeca Romero Rainey, Chairman of ICBA How You Can Help Many community bankers have asked ICBA how they can help with the lawsuit against the National Credit Union Administration. In response, ICBA has established the ICBA Credit Union Litigation Fund. All contributions to the ICBA Credit Union Litigation Fund are voluntary and will be directed to the association’s campaign to level the playing field through the courts. Although we know this legal fight will be expensive, ICBA is fully prepared to do whatever is necessary to achieve a successful outcome with both the NCUA’s pending member business lending and soon-to-be released field-of-membership rules.