Makes you say "Hmmm..."

Makes you say "Hmmm..."

Recently, I have had several consultants tell me the banks need to give up the credit union fight. They said CU’s aren’t an issue and don’t bother you. Really, having a competitor that has a substantial tax advantage (federal, state and local), competing with me for both deposits and loans, while enjoying those tax advantages? And now, add the following:

Tell me your reaction and the results if your bank had these numbers:

Capital/Assets: .99%!  Total NW/Assets: 3.64! Current Texas ratio: 156%

YE 2012 Texas Ratio: 826%!!!

How quickly would you be closed, shown the door and eventually hauled to the courthouse, professionally and personally?

Yet… in Dallas, there is a $1.4 BILLION credit union still merrily operating (after a $60 million capital injection FROM the NCUA no less). But hey, they are “making progress”. REALLY?

Not only are Community Banks treated differently from the taxing authorities but this is a visible example of the regulators disparity in treatment. And, these guys only file a 28 page Call Report (including 2 page cover and instruction).

Community bankers are saddled with taxation at almost every turn. We have an 80 page call report with over 600 pages of instructions. And, we have a real regulator (that doesn’t seem to want to bail us out – at least the community banks, that is).

This is outrageous. At least that’s my opinion. What’s yours? Email me at chip.lynch@icba.org

Community Bank Action Critical in August

Action Alert
Community Bank Action Critical in August
ICBA is urging community bankers to meet with their members of Congress during the August recess to rally support for community bank positions on key issues. ICBA is reaching out to community bankers and its network of affiliated state associations to set up district meetings, attend town hall events and invite members of Congress to visit community banks.
ICBA has prepared sample letters and congressional contact information community bankers can use to set up district meetings. To schedule a meeting, community banks can fill out the sample letter template and use the contact info to fax the request to their representative’s scheduler, and follow up with a phone call to ensure it was received. Community bankers can then leave ICBA informational one-pagers for additional reference following district meetings. Community bankers with questions can contact ICBA Grassroots Outreach Manager Brian Anderson at (202) 821-4418 or brian.anderson@icba.org.
Community bankers should address the Obama administration’s proposed regulatory reforms, the Consumer Financial Protection Agency Act of 2009 (H.R. 3126), the Bank Accountability and Risk Assessment Act of 2009 (H.R. 2897), regulating debit and credit card interchange fees and overly aggressive bank examinations.
Additional grassroots resources to press these critical issues, including tips for meeting with members of Congress, are available on the ICBA Grassroots Advocacy Center.