Berger blasts bank lobbyists for misleading comments on CU-bank mergers
In a new American Banker op-ed, NAFCU President and CEO Dan Berger rebuked bank lobbyists for misleading the public with their criticisms of credit union-bank mergers.
"Yet banking groups won’t make a peep about their $21 billion tax windfall they received as a result of the Tax Cuts and Jobs Act of 2017," said Berger. "Nor will they openly acknowledge how nearly one-third of U.S. banks enjoy Subchapter S status, thereby allowing them to distribute untaxed profits directly to their shareholders and avoid paying federal taxes."
Berger noted that in the consolidating financial services environment, "over the past two years, there have only been a handful of credit union-bank mergers, compared to nearly 400 mergers between banks. While not new, there has been much discussion leading to misinformation regarding credit union-bank mergers by the banking trade associations."
Berger cited several reasons that bankers' arguments are misleading, including:
- while credit unions have grown slightly over the past decades – a 2 percent increase in market share from 1992 to 2018 – big banks are devouring community banks ;
- the 15 largest banks have grown substantially since the financial crisis, even with increased regulation and some incurring billions of dollars in fines for consumer abuses; and
- the total market share of total assets of the largest 100 banks is 74.9 percent, crunching smaller banks down from 53.3 percent in 1992 to just 17.4 percent in 2019, according to recent data, while credit unions own just 7.6 percent of the market.
Berger credited banks' outrage to "[their] desire to increase their own profits by working to undercut a competing yet separate industry."
To read the entire op-ed in American Banker, click here.
Add to Calendar 2022-09-29 14:00:00 2022-09-29 14:00:00 Coming Soon: CECL This is a deep-dive refresher into the requirements of the Current Expected Credit Losses (CECL) standard. ASC 326 (CECL) is the most significant accounting standard to impact credit unions in many years. Your credit union should be prepared to adopt CECL in 2023 – this will be an effort to make sure you have a sound calculation, appropriate accounting policies and sufficient disclosures. In this Coming Soon: CECL webinar, you’ll get a baseline understanding of the accounting decisions required by the standard, with a focus on those that have tripped up earlier adopters; lessons learned from previous adopters; best practices and key items to consider for your model on a go-forward basis. Key Takeaways Understand requirements of the CECL standard Analyze lessons learned and best practices from previous adopters Evaluate key items to consider for future maintenance of the CECL model(s) Register Now$295 Members | $395 Nonmembers(Additional $50 for USB)One registration gives your entire team access to the live webinar and on-demand recording until September 29, 2023.Go to the Online Training Center to access the webinar after purchase » Who Should Attend Presidents and CEOs CFOs Accounting titles NCRMs Risk titles Education Credits NCRMs will receive 1.0 CEUs for participating in this webinar CPA credit information is below; recommended 1.0 CPE credits. CPA Certification Credit Information Reviewer: Josie Collins, Senior Associate Director of Education, NAFCU Learning Objectives: See key takeaways Program Level: Basic Prerequisites Needed: None Advance Preparation Needed: None Delivery Method: Group Internet-Based Recommended CPE Credits: 1.0 credits Recommended Field of Study: Accounting – Technical About Our Webinars Our webinars are streamed live from NAFCU headquarters near Washington, DC. Your audio/video feed of the presenters includes presentation slides and downloadable handouts. You can easily submit your questions to the presenters at any time during the live broadcast, with no dialing over the phone! The audio and video stream directly through your computer. Web NAFCU email@example.com America/New_York public
Credits: NCRM, CPE
Get daily updates.
Subscribe to NAFCU today.