Sunday, September 29, 2013
If Banks can't stand the heat
Why do they want to throw everybody else out of the kitchen? Competition is supposed to be good for business but it does make you work at what you do to stay ahead. Apparently the Banksters feel they are too good to face competition.
Credit unions have been snatching customers from banks amid consumer frustration over rising fees and outrage over Wall Street's role in the financial crisis.A handful of Big Banksters control over 80% of all depositsand their fear of competition (and the thought of having to work for a living) scares them silly. On the other hand, loosening regulations on credit unions is also scary. Let things lie so the litle people have a safe way to say "Fuck you" to the Big Banksters.
Now banks are fighting back by trying to take away something vital to credit unions — their federal tax exemption.
With fast-growing credit unions posing more formidable competition to banks, industry trade groups are pressing the White House and Congress to end a tax break that dates to the Great Depression.
Bankers long have complained the tax break is an unfair advantage for large credit unions. Now they see an opportunity to get rid of it as lawmakers begin work on a major overhaul of the tax code that is aimed at eliminating many corporate exemptions and lowering the overall tax rate.
Credit unions said the effort to take away their tax exemption was simply an attempt to stifle competition and remove one of the only checks on bank fees for consumers.
And it comes as some in Congress are pushing to loosen regulations on credit unions so they can expand their business further, including legislation that would lift a cap on the amount of money they can lend to businesses.
The tax exemption is crucial to credit unions, which by law can't raise capital through public stock offerings the way that banks can, said Fred R. Becker Jr., president of the National Assn. of Federal Credit Unions, a trade group with about 3,800 federally chartered members.
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