To The Editor:

In the May 7, 2012 issue of Banker & Tradesman, Vincent Valvo commented in his Financial Observer column that it is disingenuous for banks, particularly mutual banks, to object to the expansion of credit union lending limits.

While Mr. Valvo is correct that thrifts, too, once fought for expanded powers, what he conveniently omits from his dissertation about credit union expansion is the fact that, should the bill pass in Washington, D.C., there are only five Massachusetts credit unions that would significantly benefit.

Moreover, he conspicuously avoids how mutual banks paid taxes well before the establishment of NOW accounts and their own expanded lending powers. Credit unions are unwilling to pay any taxes for their proposed new powers.

Looking beyond the obfuscation and bias present in Mr. Valvo’s column, it is clear expanding credit union powers will not result in the granting of new loans to benefit small businesses, but in the stealing of loans from Massachusetts’ tax-paying community banks. That would hurt small credit unions, community banks and taxpayers alike.

Sincerely,
Daniel J. Forte
President, Massachusetts Bankers Association
Boston