Every NJ CU Employee & Volunteer Needed to Email our Senators this Afternoon
To Oppose Bankers’ Bill Unless it Includes MBL Reform
The Senate voted yesterday to proceed with consideration of the bankers’ Transaction Account Guarantee (TAG) extension bill (S.3736). A final vote is expected tomorrow morning. We remain opposed to the TAG extension unless it is amended to include MBL reform.
Right now we must do everything we can to defeat the TAG stand-alone bill.
This is our best opportunity in ten years to get MBL reform passed, and marks the first time credit unions have gone on the offensive. We’ve taken the fight to the bankers’ end of the field and now more than ever we need every credit union employee and volunteer to participate in this Call-to-Action. Our creditability is on the line and there’s simply no reason why we can’t generate two thousand or more emails today.
Even if you have already done so, please visit the Credit Union Online Grassroots Action Center this afternoon to send pre-drafted emails to our senators. Please do whatever you can to encourage your credit union’s staff and volunteers to do so as well.
It takes less than three minutes to play an important role in our grassroots efforts.
Credit union advocates can also call Senators Menendez and Lautenberg offices at 202-224-3121 to leave a message encouraging them to oppose the TAG extension when it comes to the floor for a vote. Talking points follow:
During the TARP era, the FDIC used emergency powers to extend unlimited deposit insurance coverage to noninterest bearing accounts at banks. This was necessary to maintain confidence in the banking sector which was in crisis. Under Dodd-Frank, Congress temporarily authorized the FDIC to continue this coverage, and expanded the program to include credit unions as well through the NCUSIF. This program, called the Transaction Account Guarantee Program (TAG), expires at the end of the year.
Credit Union Position
Credit unions opposes the extension of the TAG program because it is risky, unnecessary, has not proven to foster additional bank business lending and there are better policy options available to Congress, namely the Credit Union Small Business Jobs Act (S-2231).
Key Message Points
· Congress should end bank bailouts and handouts. Since TAG is no longer necessary, continuing the program is a giveaway to the banks, providing a taxpayer-backed guarantee to over a trillion dollars of large depositor deposits.
· The banks are flush with liquidity but are not lending. During the financial crisis small business lending by small banks contracted 15% while credit union small business lending expanded 45%. This program was not successful in encouraging banks to lend to small businesses.
· There are better options available to Congress: small businesses need banks and credit unions to provide access to credit. If Congress decides to continue to provide taxpayer backed insurance over large deposits, then Congress should also permit experienced, well-managed credit unions to continue to lend to small businesses by enacting S. 2231, the Credit Union Small Business Jobs Act.
· Vote NO on S. 3637