ICBA President & CEO Rebeca Romero Rainey warned that an “emergency” credit union merger that will allow anyone in the United States to join $24 billion-asset Pentagon Federal Credit Union is just the latest industry power grab. In a new post on ICBA’s “ Main Street Matters” blog , Romero Rainey also noted that in defending the merger, credit union activists have dropped the idea that credit unions exist to serve people of modest means.
She cautioned: “Policymakers need to see this deal for what it really is. The fact that this mega credit union can now serve anyone in the U.S. while exploiting its tax-exempt status is a serious problem. . .The only singular common bond that their customers will share is that they are part of this mega credit union. This is hardly the idea that Congress had in mind when it enacted the Federal Credit Union Act in 1934 giving tax-exempt status to credit unions to serve people of modest means that have a common bond of occupation or association.”