Credit Union group urges Obama to raise cap for MBL's (member business loans)

[stevedeshazer]

Translation: Let Credit Unions start lending money.

http://www.cutimes.com/News/2010/8/Pages/CUNA-Urges-Obama-to-Push-for-Raising-MBL-Cap.aspx

CUNA Urges Obama to Push for Raising MBL Cap

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The next time President Obama discusses ways to stimulate business lending he would “provide a critical boost” to credit unions by urging a raise in the cap on member business lending.

That’s the message CUNA President/CEO Bill Cheney conveyed to Obama in a letter he sent to Obama on Friday.

He added that “politics and opposition from community bankers are preventing policymakers from doing the right thing, supporting the credit union measure.”

Cheney sent the letter the day after Obama gave a speech urging lawmakers to pass a bill that would create a fund that community banks can use to make more commercial loans. Credit unions are working with Sen. Mark Udall (D-Colo.) to add an amendment to the bill, which lawmakers will consider again when they return from recess next month, which would raise the cap on member business loans from 12.25% of assets to as much as 27.5% of assets.

<snip>

If the banks won't do it, let the credit unions stimulate the economy. I belong to a credit union, why not raise the cap and lend more money to stimulate the economy instead of sitting on it like the big banks?

Seems like a good idea to me.

[stevedeshazer]

1. And, I don't remember any TARP money going to the locally owned credit unions.

You can't "belong" to a BANK. Your money belongs to THEM, not the other way around.

[customerserviceguy]

2. Will there be a bailout to support credit unions

when those business loans go sour? One of the things I like about a credit union is that they usually invest member deposits in loans that are not as foolhardy as the banksters gamble in.

But then again, if you're going to make fat profits from those loans if they get paid back, and government bailouts when they go belly up, then what's the risk?