2011 GAC Briefing Book

LSCU Special EventsSunday, February 27, 5 pm - 6:30 pm

Hospitality Suite | Penn Quarter Room

Monday, February 28, 4:30 pm - 6 pmWelcome Reception | Penn Quarter Room

Tuesday, March 1, 5 pm - 6 pmHospitality Suite | Wilson Room

2011 GAC Briefing Book_Cover.ai 1 2/17/2011 9:55:11 AM

February 21, 2011

Dear CUNA GAC Attendee:

On behalf of the League of Southeastern Credit Unions (LSCU), I would like to welcome you to the

2011 CUNA Governmental Affairs Conference (GAC). This meeting is our premier federal

legislative and political gathering, and the dedication of credit union leaders, such as you, makes

this important grassroots lobbying event possible.

The 2011 CUNA GAC offers a great line-up of speakers and events. Our General Session speakers

include House Financial Services Committee Chairman Spencer Bachus of Alabama, Florida

Congresswoman Debbie Wasserman-Shultz who led the fight against the Durbin interchange

amendment, House Speaker John Boehner, and many others who have the ability to make an

impact on credit unions.

In addition to the speakers, there are numerous break-out sessions on important and timely topics.

The League has arranged receptions for our attendees on Sunday, Monday, and Tuesday evenings

in the Penn Quarter Room of the Grand Hyatt Hotel. This is a great opportunity to catch up with

friends and colleagues, meet new ones, and network among credit union and system partners from

our two states.

Of course, the main event of the CUNA GAC will be the Hill meetings with members of our

Congressional delegations. With so many new members of Congress from both states, getting the

credit union message out is critical. This is our chance to let them know that “Credit unions are

the best way for consumers to conduct their financial services.”

I hope you will take time to look through this briefing book. It contains a schedule of events,

information on our Hill visits, briefing materials, and other information to help you get the most out of

your CUNA GAC experience.

I look forward to seeing all of you in Washington, D.C. Please do not hesitate to contact me or any

of the Governmental Affairs staff if we can help you with your time at the CUNA GAC.

Sincerely,

Patrick La Pine

President/CEO

LSCU State Governmental Affairs Conference

Montgomery, AL

Location & Fee InformationRenaissance Hotel Registration $99 per person201 Tallapoosa StreetMontgomery, Alabama 36104

Questions: Becki Payne, 866.231.0545 x2129 becki.payne@lscu.coop

Conference AgendaWednesday, March 30, 2011

8:30am – 10:30am Directors Financial Literacy Training Session (Optional Pre-Conference Training)

10:30am – 11:30am Registration

11:30am – 12:45pm GAC Awards Luncheon

1pm – 2pm Opening Session

2pm – 3pm LSCU’s 2011 Legislative & Regulatory Issues Agenda

3:15pm – 4:15pm Roundtable: PAC Fundraising & Advocacy Best Practices

4:15pm – 5:15pm State Legislative Outlook

5:15pm – 7pm Legislator Reception

Thursday, March 31, 2011

8am – 9:30am Regulator Roundtable & Continental Breakfast

9:30am Adjourn & Depart for Hill Visits

FEATURED SPEAKERSRyan Donovan, Vice President of Legislative AffairsCredit Union National Association

Herb Yolles, Director of Region IIINational Credit Union Association

Larry Morgan, AdministratorAlabama Credit Union Administration

Alabama Legislative Leadership

LSCU State Governmental Affairs Conference

Tallahassee, FL

Location & Fee InformationHotel Duval Registration: $99 per person415 North Monroe StreetTallahassee, Florida 32301

Questions: Becki Payne, 866.231.0545 x2129 becki.payne@lscu.coop

Conference AgendaTuesday, April 12, 2011

9:30am – 11:30am Directors Financial Literacy Training Session (Optional Pre-Conference Training)

1pm Tallahassee Chapter Golf Tournament to Benefit the LSCU PACSouthwood Golf Course

Wednesday, April 13, 2011

7:30am – 8:30am Registration & Continental Breakfast

8:30am – 10am Opening Session

10:15am – 11:15am State Legislative Outlook

11:30am – 1pm GAC Awards Luncheon

1:15pm – 2:30pm Roundtable: PAC Fundraising & Advocacy Best Practices

2:45pm – 4pm LSCU’s 2011 Legislative & Regulatory Issues Agenda

5pm – 6:30pm Legislator Reception

Thursday, April 14, 2011

7:45am – 8:30am Continental Breakfast

8:30am – 10am Regulator Roundtable

10am Adjourn & Depart for Hill Visits

FEATURED SPEAKERSRyan Donovan, Vice President of Legislative AffairsCredit Union National Association

Herb Yolles, Director of Region IIINational Credit Union Association

Bruce Ricca, Bureau ChiefBureau of Credit Unions

Linda CharityFlorida Office Financial Regulation

LSCU Multi-Client Lobbyists:Jim Smith, Smith & BallardMercer Fearington, Fearington & Smith LLC

You are cordially invited to the

“Creating the Credit Union Future” at the CUNA GAC

LSCU Hospitality Suite Sunday, February 27 Penn Quarter Room

5pm – 6:30pm

LSCU Welcome ReceptionMonday, February 28Penn Quarter Room

4:30pm – 6pm

LSCU Hospitality SuiteTuesday, March 1

Wilson-Roosevelt Room5pm – 6pm

All Events Held at the Grand Hyatt1000 H Street NW | Washington, DC

Sponsored by:

Sponsored by:

Sponsored by:

2011 GACSchedule at a GlanceFebruary 27 – March 3

Sunday, February 27, 2011

12:00 p.m. – 8:30 p.m. Conference Registration and Welcome Center Open WCC West

1:00 p.m. – 5:15 p.m. NEW! Small Credit Union Roundtable WCC 207A

5:00 – 6:30 LSCU Hospitality Room Grand HyattSponsored by Southeast Corporate & Leverage Penn Quarter

7:00 p.m. – 8:30 p.m. Exhibit Hall Grand Opening Reception WCC Hall D

8:30 p.m. Evening Entertainment – Three Dog Night WCC Hall ESponsored by CUNA Councils

Monday, February 28, 2011

7:00 a.m. – 4:30 p.m. Conference Registration WCC West

7:30 a.m. – 9:15 a.m. Exhibit Hall Open (Continental Breakfast) WCC Hall D

9:00 a.m. – 10:30 a.m. Opening General Session WCC Hall EIncluding Mark Halperin and John Heilemann

10:30 a.m. –11:30 a.m. CUNA Annual General Meeting WCC Hall E

11:30 a.m. – 1:30 p.m. Exhibit Hall Open (Lunch Provided) WCC Hall D

1:30 p.m. – 2:30 p.m. Legislative and Political Update WCC Hall E

2:30 p.m. – 4:00 p.m. General Session WCC Hall EIncluding Chesley B. “Sully” Sullenberger, III

4:30 – 6:00 LSCU Attendee Reception Grand HyattSponsored by CU Solutions Penn Quarter& Morgan Stanley Smith Barney

5:30 p.m. Herb Wegner Memorial Awards Dinner Grand Hyatt(Separate ticketed event)

Tuesday, March 1, 2011

7:00 a.m. – 5:00 p.m. Conference Registration and Welcome Center Open WCC West

7:30 a.m. – 8:45 a.m. Exhibit Hall Open (Continental Breakfast) WCC Hall D

9:00 a.m. – 12:00 p.m. General Session WCC Hall EIncluding Point-Counterpoint with Arianna Huffington and Mary Matalin

12:00 p.m. – 1:45 p.m. Exhibit Hall Open (Lunch Provided) WCC Hall D

2:00 p.m. – 3:15 p.m. Breakout Sessions WCC Examinations in a challenging economic environment; Activating your grassroots membership; Preparing for new rules on debit interchange; The focus in Congress on GSE reform; Dealing with the media in stressful times; Preparing for SAFE Act Registration

3:30 p.m. – 4:45 p.m. Breakout Sessions WCC The 2011 economic forecast: implications for CUs Changing fiduciary responsibilities for credit union directors Educating new members of Congress about the CU difference Lending in the Dodd-Frank era Washington’s new push for deficit reduction: Implications for the CU tax

Exemption

4:45 p.m. – 6:00 p.m. Reception with NCUA Board and Regional Directors WCC Exhibit

5:00 – 6:00 p.m. LSCU Hospitality Room Grand HyattSponsored by Co-OP Financial Services Wilson Room

5:00 p.m. – 6:30 p.m. Exhibit Hall Closing Session WCC Hall D

9:00 p.m. – 10:30 p.m. Late Night at GAC Renaissance(Sponsored by CUNA Mutual Group, Renaissance) Ballroom

Wednesday, March 2, 2011

8:00 a.m. – 12:00 p.m. Conference Registration and Welcome Center Open WCC West

8:30 a.m. – 11:45 a.m. General Session WCC Hall E8:45 Alabama Congressman Spencer Bachus speaks

All AL and FL Attendees invited for a meeting backstageImmediately after he speaks.

9:30 FL Congresswoman Debbie Wasserman-Shultz speaks

CAPITOL HILL VISITS See Schedule

7:00 p.m. Closing Conference Gala RenaissanceBallroom

Thursday, March 3, 2011

Capitol Hill Visits Continue See Schedule

Travel Home Safely and THANK YOU for your Advocacy Efforts!

2011 CUNA GAC Alabama Attendees

Anise, Ola President/CEO Azalea City CU Mobile

Bell, Kayce Chief Operations Officer Alabama CU Tuscaloosa

Bell, Scotty Branch Manager Family Savings FCU Gadsden

Boysen, Jane ManagerAlabama Rural Electric FCU

Montgomery

Brackin, Donna Supervisory Committee Army Aviation Center FCU Daleville

Brown, Franklin Director/Supervisory Committee Listerhill CU Sheffield

Burns, Wally Director Family Savings FCU Gadsden

Cantrell, Marquetta President/Manager Rocket City FCU Huntsville

Cobb, Tommy Chief Executive Officer Tuscaloosa Credit Union Tuscaloosa

Cochran, Jason Director of Legislative Affairs LSCU Birmingham

Conway, Carolyn VP-Compliance/Internal Auditing Listerhill CU Sheffield

Dauro, Vince Director Rocket City FCU Huntsville

Davis, Mickey Director Army Aviation Center FCU Daleville

Eagerton, Larry Director Army Aviation Center FCU Daleville

Faulkner, Charles President/CEO Jefferson County ECU Birmingham

Gerety, Christopher General Counsel APCO ECU Birmingham

Gordon, Robbie Grassroots/PAC Coordinator LSCU Birmingham

Green, Brad President/CEO Listerhill CU Sheffield

Hasty, Jeffrey Chief Operations Officer Naheola Credit Union Pennington

Higgins, Rick Vice President Coosa Pines FCU Childersburg

Howell, Zac VP-Adm/Mktg Family Security CU Decatur

Jeffreys, David Director Listerhill CU Sheffield

Johnson, Mark Chief Executive Officer Naheola Credit Union Pennington

Jones, Gladys Board Vice Chair Alabama CU Tuscaloosa

Keller, Jeanette Manager Blue Flame CU Mobile

La Pine, Patrick President/CEO LSCU Tallahassee

Mann Jr, Merrill Vice President APCO ECU Birmingham

Massey, Mark Director Listerhill CU Sheffield

McCaghren, Debra VP-Finance/IT Family Security CU Decatur

McCarty, Will Sr. VP of Gov't Affairs LSCU Birmingham

McGee, Joe President/CEO Legacy Community FCU Birmingham

Mingus, Charlie Board Chair Army Aviation Center FCU Daleville

Morgan, Clay VP-Finance Listerhill CU Sheffield

Nobbley, Shane Chief Executive Officer Family Security CU Decatur

Pate, Wendell Board Secretary APCO ECU Birmingham

Reed, Ronnie Director Family Savings FCU Gadsden

Rogers, Eunice CEO/Treasurer NFCDCU New York

Senn, Shirley Consultant Corporate America CU Santee

Sharp, Cole VP-Lending/Branch Ops Family Security CU Decatur

Smith, Larry Board Vice Chair Rocket City FCU Huntsville

Steensma, Bob President/CEO Five Star CU Dothan

Summerall, Ron Chief Executive Officer Alabama Teachers CU Gadsden

Sutter, Buddy Financial Services Officer Jefferson County ECU Birmingham

Swofford, Steve President/League Director Alabama CU Tuscaloosa

Varnon, Danny Executive Vice President Family Savings FCU Gadsden

Waldrop, Cracker Board Treasurer Army Aviation Center FCU Daleville

2011 CUNA GAC Florida Attendees

Adkins, Darrell Director Suncoast Schools FCU Tampa

Barwick, Annette Director Suncoast Schools FCU Tampa

Boyle, Bill Board Emeritus IBM Southeast EFCU Boca Raton

Burns, Richard Legal Counsel Dade County FCU Doral

Burrell, Bonnie Board Chair Dade County FCU Doral

Cihota, John Director Pen Air FCU Pensacola

Coarsey, Marsha Board Treasurer Community First CU Jacksonville

Darling, Linda Corporate Meeting Planner Suncoast Schools FCU Tampa

Deese, John President/CEO PBC CU West Palm Beach

Diamond, Betty Board Chair Tropical Financial CU Pembroke Pines

Dorety, Tom CUNA Director Suncoast Schools FCU Tampa

Dougherty, Kevin SVP/Information Services CFE Federal Credit Union Lake Mary

Ferreira, Marla VP-Asset Management Dade County FCU Doral

Fields, Ron President/CEO Pen Air Federal Credit Union Pensacola

Fisher, Bob President/CEO Grow Financial FCU Tampa

Flynn, Pete Supervisory Committee Suncoast Schools FCU Tampa

Garcia, Laida CUNA Director floridacentral CU Tampa

Garcia, Mario Director Dade County FCU Doral

Garland, Marvin Chief Operating Officer LEVERAGE Tallahassee

Geer, Hilda Board Vice Chair Tropical Financial CU Pembroke Pines

Gilbert, Wanda Board Secretary United Police FCU Miami

Golub, Larry Director CFE FCU Lake Mary

Goodwin, Kelly Director Orlando FCU Orlando

Greene, Errol Board 2nd Vice Chair CFE FCU Lake Mary

Gunter, Rose President/CEO Healthcare's Cooperative CU Jacksonville

Helber, Rich President/CEO Tropical Financial CU Pembroke Pines

Hennessey, Bill Director BrightStar CU Sunrise

Hewitt, Ted Director VyStar Credit Union Jacksonville

Hirabayashi, John President/CEO Community First CU Jacksonville

Howard Jr, Willie Director Space Coast CU Melbourne

Huskey, Dr Gary Director Suncoast Schools FCU Tampa

Johnson, Thelma President/CEO Dade County FCU Doral

Joseph, George President/CEO Dade County FCU Doral

Kucey, Jeanne President/CEO JetStream FCU Miami Lakes

Lai, Charlie Chief Information Officer Fairwinds CU Orlando

Langhorst, Michael AVP/Branch Manager CFE FCU Lake Mary

Lawrence, Bill Supervisory Committee BrightStar CU Fort Lauderdale

Lefkowicz, Robert Manager II-Service Center Suncoast Schools FCU Tampa

Lister, BrentPresident/CEO/LeagueTreasurer

First Florida Credit Union Jacksonville

Marsh, Pat Corporate Meeting Planner Suncoast Schools FCU Tampa

McNutt, Dan Board Treasurer Fairwinds CU Orlando

Melbourne Jr, Joe President/CEO CFE FCU Lake Mary

Metcalf, Chick Board Chair Orlando FCU Orlando

Miller, Brad President/CEO Southeast Corporate FCU Tallahassee

Miller, Kevin SVP-General Counsel CFE FCU Lake Mary

Neusaenger, John President/CEO Orlando FCU Orlando

O'Neil, Hon Paula Director Florida West Coast CU Brandon

Orr, Dr Dorothy Board Chair BrightStar CU Sunrise

Ott Wood, Mary President/CEO Florida West Coast CU Brandon

Palladino, Dr Karen Director Space Coast CU Melbourne

Perez, Mike Director Tropical Financial CU Pembroke Pines

Prior, Henry Supervisory Committee Chair City County CU Fort Lauderdale

Renderos, Julie Corporate Meeting Planner Suncoast Schools FCU Tampa

Reyes, Jace President/CEO Miami Postal Service CU Miami

Reynolds, Christina Chief Executive Officer Florida State EFCU Pensacola

Reynolds, Linda President/CEO Pinellas FCU Largo

Ross Esq, Jared Director of Legislative Affairs LSCU Tallahassee

Satchel, Tony Corporate Meeting Planner Suncoast Schools FCU Tampa

Schleiter, Rob Executive Vice President Southeast Corporate FCU Tallahassee

Shea, Tom Director PBC CU West Palm Beach

Skaggs, Rick President/CEO USF FCU Tampa

Snead, Lisa Director Fairwinds CU Orlando

Snelgrove, Jim Board Chair PBC CU West Palm Beach

Southall, David President/CEO Innovations FCU Panama City

Starr, Mark President/CEO Florida CU Gainesville

Strickland, Ann Board Secretary Miami Postal Service CU Miami

Thames, Justin Political Action Coordinator LSCU Tallahassee

Turner, Dr Susan Director Suncoast Schools FCU Tampa

Weinstein, Suzanne Chief Financial Officer Orlando FCU Orlando

West, Terry President/CEO VyStar Credit Union Jacksonville

Whitlock, Dr Earl Board Chair Suncoast Schools FCU Tampa

Wilkinson, Annie President/CEO Dade County FCU Doral

Wood III, Art President/CEO Railroad and Industrial FCU Tampa

Worrell, Darryl President/CEO Envision CU Tallahassee

Wright, Harry Board Vice Chair Dade County FCU Doral

2011 CUNA GACOn Site Contact Information

Patrick La Pine, Will McCartyCEO Sr. VP of Governmental Affairs(850) 212-3160 (Mobile) (205) 516-6985 (Mobile)Patrick.lapine@lscu.coop Will.mccarty@lscu.coop

Jared Ross Jason CochranDirector of Legislative Affairs, FL Director of Legislative Affairs, AL(850) 590-6570 (Mobile) (205) 249-4478 (Mobile)Jared.ross@lscu.coop Jason.cochran@lscu.coop

Justin Thames (FL) Robbie Gordon (AL)Political and Grassroots Coordinator, FL Political and Grassroots Action Coordinator, AL(850) 345-7795 (Mobile) (205) 834-1266 (Mobile)Justin.thames@lscu.coop Robbie.gordon@lscu.coop

Credit Union National Association Grand Hyatt Washington601 Pennsylvania Ave NW, South Bldg 1000 H Street NWWashington DC 20004-2601 Washington, DC 20001Main # (202) 638-5777 Phone: 202-582-1234Fax# (202) 638-7734 Fax: 202-637-4781

Alabama Key Congressional Staff

Senator Jeff Sessions335 Russell Senate Office BuildingWashington, DC 20510(202) 224-4124

Chief of Staff: Rick DearbornLegislative Director: Sandra LussFinancial Inst. Staffer: Mike SharpScheduler: Kate Hollis

Senator Richard Shelby304 Russell Senate Office BuildingWashington, DC 20510(202) 224-5744

Chief of Staff: Alan HansonLegislative Director: Graham SmithFinancial Inst. Staffer: Jim Johnson (on Committee Staff)Scheduler: Anne Caldwell

District 1 – Congressman Jo Bonner2236 Rayburn House Office BuildingWashington DC 20515(202) 225-4931

Chief of Staff: Alan SpencerLegislative Director: Mike SharpFinancial Inst. Staffer: Mike SharpScheduler: Errical Bryant

District 2 – Congresswoman Martha Roby414 Cannon House Office BuildingWashington, DC 20515(202) 225-2901

Chief of Staff: Stephen BoydLegislative Director: Jennifer WarrenFinancial Inst. Staffer: Frank BarnettScheduler: Jessica Fuller

District 3 – Congressman Mike Rogers324 Cannon Office BuildingWashington DC 20515(202) 225-3261

Chief of Staff: Marshall MacomberLegislative Director: Whitney VerettFinancial Inst. Staffer:Forrest McConnellScheduler: Cameron Bishop

District 4 – Congressman Robert Aderholt2264 Rayburn House Office BuildingWashington, DC 20515(202) 225-4876

Chief of Staff: Mark BuschingLegislative Director: Mark DawsonFinancial Inst. Staffer: Graham HixonScheduler: Stephanie Brown

District 5 – Congressman Mo Brooks1641 Longworth House Office BuildingWashington, DC 20515(202) 225-4801

Chief of Staff: Mark PettittLegislative Director: Lance SeibenhenerFinancial Inst. Staffer: Stephen DavisScheduler: Stephanie Campbell

District 6 – Congressman Spencer Bachus2246 Rayburn House Office BuildingWashington, DC 20515(202) 225-4921

Chief of Staff: Michael Staley (Personal Office)Legislative Director: Philip SwartzfagerFinancial Inst. Staffer: NOTE: (Handled through Multiple Committee Staff)Scheduler: Gerry Cashin

District 7 – Congresswoman Terri Sewell1133 Longworth House Office BuildingWashington, DC 20515(202) 225-2665

Chief of Staff: Nicholas ReynoldsLegislative Director: Matt ReelFinancial Inst. Staffer: Cachavious EnglishScheduler: Sophie Cooper

Florida Key Congressional Staff

Senator Marco RubioB 40 A Dirksen Senate Office BuildingWashington, DC 20510(202) 224-3041

Chief of Staff: Cesar CondaLegislative Director: Sally CanfieldFinancial Inst. Staffer:Scheduler: Bexie Nobles

Senator Bill Nelson716 Hart Senate Office BuildingWashington DC 20510(202) 224-5274

Chief of Staff: Pete MitchellLegislative Director: Suzie Perez-QuinnFinancial Inst. Staffer: Ryan McCormickScheduler: Alica Tighe

District 1 – Congressman Jeff Miller2416 Rayburn House Office BuildingWashington, DC 20515(202) 225-4136

Chief of Staff: Dan McFaulLegislative Director:Financial Inst. Staffer: Elby GodwinScheduler: Rina Shah

District 2 – Congressman Steve Southerland1229 Longworth House Office BuildingWashington, DC 20515(202) 225-5235

Chief of Staff: Tom StallingsLegislative Director: Karen WilliamsFinancial Inst. Staffer: Karen WilliamsScheduler: Tom Stallings

District 3 – Congresswoman Corrine Brown2336 Rayburn House Office BuildingWashington, DC 20515(202) 225-0123

Chief of Staff: Ronnie SimmonsLegislative Director: Nick MartinelliFinancial Inst. Staffer: Lee FooterScheduler: Cathy Gass

District 4 – Congressman Ander Crenshaw137 Cannon House Office BuildingWashington, DC 20515(202) 225-2501

Chief of Staff: John ArialeLegislative Director: Erika StiebelFinancial Inst. Staffer: J ennifer DebesScheduler Lynn Miller

District 5 – Congressman Richard Nugent1547 Longworth House Office BuildingWashington, DC 20515(202) 2251002

Chief of Staff: Justin GraybelleLegislative Director: Katharine TrollerFinancial Inst. Staffer: Katharine TrollerScheduler Cate Minichino

District 6 – Congressman Cliff Stearns2306 Rayburn House Office BuildingWashington, DC 20515(202) 225-5744

Chief of Staff: Jack SeumLegislative Director: Matt MandelFinancial Inst. Staffer: Joe MillatoScheduler: Sarah Schefer

District 7 – Congressman John Mica2313 Rayburn House Office BuildingWashington, DC 20515(202) 225-4035

Chief of Staff: Russell RobertsLegislative Director: Brian WaldripFinancial Inst. Staffer: Gerry LynamScheduler: Mary Klappa

District 8 – Congressman Daniel Webster1039 Longworth House Office BuildingWashington, DC 20515(202) 225-2176

Chief of Staff: Pepper PenningtonLegislative Director: Frank WalkerFinancial Inst. Staffer: Garrett BessScheduler: Elizabeth Tyrrell

District 9 – Congressman Gus Bilirakis1124 Longworth House Office BuildingWashington, DC 20515(202) 225-5755

Chief of Staff: David PelusoLegislative Director: Richard HoarFinancial Inst. Staffer: Lauren PfingstangScheduler: Tim Tracy

District 10 – Congressman Bill Young2407 Rayburn House Office BuildingWashington, DC 20515(202) 225-5961

Chief of Staff: Harry GlennLegislative Director: Brad StineFinancial Inst. Staffer: Matthew DickersonScheduler: Christina Burmeister

District 11 – Congresswoman Kathy Castor137 Cannon House Office BuildingWashington, DC 20515(202) 225-3376

Chief of Staff: Clay PhillipsLegislative Director: Rene MunozFinancial Inst. Staffer: Rene MunozScheduler: Lara Hopkins

District 12 – Congressman Dennis Ross404 Cannon House Office BuildingWashington, DC 20515(202) 225-1252

Chief of Staff: Fred PiccoloLegislative Director: Anthony FotiFinancial Inst. Staffer: Elise GatleyScheduler: Lisa Griffin

District 13 – Congressman Vern Buchanan221 Cannon Office BuildingWashington, DC 20515(202) 225-5015

Chief of Staff: Dave KarvelasLegislative Director: Shane LiebermanFinancial Inst. Staffer: Margo KeelerScheduler: Margo Keeler

District 14 – Congressman Connie Mack115 Cannon House Office BuildingWashington, DC 20515(202) 225-2536

Chief of Staff: Hanz KlingerLegislative Director: Gaylen RoehlFinancial Inst. Staffer: Matthew SatterleyScheduler: Laruen Kelm

District 15 – Congressman Bill Posey132 Cannon House Office BuildingWashington, DC 20515(202) 225-3671

Chief of Staff: Stuart BurnsLegislative Director:Financial Inst. Staffer: Nicole McClearyScheduler: Catherine Eng

District 16 – Congressman Tom Rooney1529 Longworth House Office BuildingWashington, DC 20515(202) 225-5792

Chief of Staff: Brian CrawfordLegislative Director: Hannah WalkerFinancial Inst. Staffer: Hannah WalkerScheduler: Michele Reinshuttle

District 17 – Congresswoman Fredrica Wilson208 Cannon House Office BuildingWashington, DC 20515(202) 225-4506

Chief of Staff: Tasha ColeLegislative Director:Financial Inst. Staffer:Scheduler: Toby Watkins

District 18 – Congresswoman Ileana Ros-Lehtinen2470 Rayburn House Office BuildingWashington, DC 20515(202) 225-3931

Chief of Staff: Art EstopinanLegislative Director: Sarah GaminoFinancial Inst. Staffer:Scheduler: Christine Del Portillo

District 19 – Congressman Ted Deutch1024 Longworth House Office BuildingWashington, DC 20515(202) 225-3001

Chief of Staff: Joshua RoginLegislative Director: Ellen McLarenFinancial Inst. Staffer: Joshua LitmanScheduler: Alex Rocha

District 20 – Congresswoman Debbie Wasserman-Shultz118 Cannon House Office BuildingWashington, DC 20515(202) 225-7931

Chief of Staff: Tracie PoughLegislative Director: Coby DolanFinancial Inst. Staffer: Ian RayderScheduler: Irena Vidulovic

District 21 – Congressman Mario Diaz-Balart2244 Rayburn House Office BuildingWashington, DC 20515(202) 225-4211

Chief of Staff: Cesar GonzalezLegislative Director: Miguel MendozaFinancial Inst. Staffer:Scheduler: Kelly Dernnon

District 22 – Congressman Allen West1708 Longworth House Office BuildingWashington, DC 20515(202) 225-3026

Chief of Staff: Jonathan BlythLegislative Director: Josh GrodinFinancial Inst. Staffer: Josh GrodinScheduler: JoBeth Banas

District 23 – Congressman Alcee Hastings2353 Rayburn House Office BuildingWashington, DC 20515(202) 225-1313

Chief of Staff: Lale MamauxLegislative Director: Jason HarrisFinancial Inst. Staffer: Mark PerkinsScheduler: Anna Gonzalez

District 24 – Congresswoman Sandy Adams216 Cannon House Office BuildingWashington, DC 20515(202) 225-2706

Chief of Staff: Charlie KellerLegislative Director:Financial Inst. Staffer:Scheduler: Courtney Cannon

District 25 – Congressman David Rivera328 Cannon House Office BuildingWashington, DC 20515(202) 225-2778

Chief of Staff: Stephen VermillionLegislative Director:Financial Inst. Staffer: Hector ArguilloScheduler: Barbara Lopez

Hike-the-Hill Congressional Meetings

Our schedule of meetings with our members of Congress is always tentative until justdays before the meetings. To accommodate all offices, changes to the schedule mustbe made until all are finalized. In order to ensure that you have the most accurate andcomplete schedule of our meetings, the League will be sending the schedule separatelyby email at the end of the week before departure for the GAC.

Updates to the schedules may be necessary as late as just days before the meetings.The most up-to-date schedules will be distributed at the League’s hospitality receptionson Sunday, Monday, and Tuesday nights, so please attend these events.

Assignments of MeetingsThe schedule of Hill visits will be a list of which visits each credit union is assigned to,the time, and location. League staff is working to ensure each attendee is able to attendas many meetings as possible with members of Congress representing areas whereyour credit union operates. If your credit union is assigned to conflicting meetings,please contact League staff to arrange attendance to ensure all Congressionalmeetings are well represented by credit unions.

Because of the limited space in the Senate offices, and the large number of attendeesfrom Alabama and Florida, Senate meetings will be assigned to ensure that eachSenate meeting is well represented but can also accommodate those attending. We willprovide a list of individuals from credit unions to attend each visit, and ask that thosewho are assigned to a particular Senate meeting attend, but if you are not assigned wehope you understand the space limits that necessitate assigning individuals to thesefour meetings. If you have any questions or concerns about your assigned Senatemeeting, please contact League staff prior to the meeting.

CUNA HIKE THE HILL

CONGRESSIONAL MEETING OUTLINE

Every Congressional visit is different. Participants bring different perspectives and priorities based on who their credit union serves, the services it offers and the market in which it operates. Some credit unions have deep relationships with their Representatives and Senators while others are in the process of developing stronger relationships. Regardless, these perspectives and relationships are extremely valuable in advancing our legislative agenda on Capitol Hill.

For the visits during the 2011 Government Affairs Conference, CUNA encourages participants to emphasize the number of credit union members in each Congressional district (as indicated by Project Zip Code) and to advocate the following issues: Credit Unions Are the Best Way for Consumers to Conduct Their Financial Services

• Benefits to Credit Union Members o Lower interest rates on loans and fees on services than for-profit banks o Higher rates of return on deposits than for-profit banks o One member, one vote gives credit union members a voice in how the credit union operates o Great service from a financial institution that exists to serve members, not enrich shareholders

• Benefits to All Consumers o The presence of credit unions in a market motivates banks to keep their rates and fees competitive,

benefiting all consumers. • Credit union members save over $6.5 billion each year by doing business with their credit union as

opposed to a bank. Bank customers benefit, as well, to the tune of $3.5 billion because credit unions are in the marketplace. This means that as a result of credit unions existing in the United States, consumers save over $10 billion.

The Federal Reserve’s Debit Interchange Proposal is Unworkable and will Increase the Cost and Reduce the Availability of Financial Services for Consumers: Congress should stop, study and start over.

• The Fed's debit interchange proposal is unworkable because it does not provide small issuers with adequate protections, as Congress intended when the small issuers were exempted, or carved out, from the debit interchange law.

o First, the Fed has not taken into consideration the perspective of smaller institutions offering debit card services. For smaller institutions, the cost of providing debit services is greater than for larger institutions.

o Second, the Fed proposal does not include any enforcement provision for the exemption for small issuers.

• The failure to protect credit unions and community banks and the direct and indirect pressures in the marketplace, together will result in making small issuers subject to the capped debit interchange rate that the Fed proposes for large issuers.

o This proposal will hurt credit unions and their members. Today’s percentage-based debit interchange system reflects a credit union’s exposure; the Fed’s proposed flat capped debit rate creates exposure and loss for a credit union.

o The effect will be more than the revenue hit for financial institutions. Credit unions – because of their restrictive capital structure – will be forced to pass along these losses to their members or abandon debit card programs. Consumers lose.

• Congress needs to act. Repeal is the preferred remedy, but we know that is not politically feasible. Therefore, we encourage Congress to: Stop. Study. Start Over.

o The proposed rule needs to be delayed – either unilaterally by the Federal Reserve or statutorily by Congress. During that delay time, the direct and indirect impact on credit unions and banks needs to be studied and Congress needs to fix the statutory language.

o The fix should involve directing the Fed to look at the complete picture of the value of the card payment system, establish a system that does not include a capped rate, and enforce the exemption and protect small issuers.

Credit Unions Should Be a Part of the Solution for Small Businesses: Raising the Credit Union Member Business Lending Cap Will Help Small Businesses Create over 100,000 new jobs

• Credit unions have been lending to their business-owning members for a century. In fact, there was no member business lending cap prior to 1998.

• Net charge-off rates for credit union business loans are lower than for business loans made by banks. • At a time when banks are withdrawing credit from America’s small businesses, credit unions have actually

been expanding credit to small businesses. • Credit unions could lend up to $10 billion in the first year if the MBL cap was raised, helping America’s

small businesses create over 100,000 new jobs. This is economic stimulus that does not cost the taxpayers a dime and does not increase the size of government.

• Members of Congress constantly remind credit union advocates that the bankers oppose additional credit union business lending. They say the best solution would be to help both banks and credit unions. Congress just gave the banks $30 billion of taxpayer money lend to small businesses. Congress has helped the banks enough: the time has come to help credit unions serve their business-owning members.

• We encourage Congress to include language increasing the credit union member business lending cap in upcoming legislation.

Credit Unions Are Well Capitalized But Face Statutory Restrictions that Limit the Ability to Raise Capital and Remain Exceptionally Safe and Sound

• The credit union system is generally well capitalized, and most credit unions have continued to lend to their members when the banks have pulled back credit access from their customers. While the credit union movement as a whole remains very well capitalized, a number of credit unions are close to or past the prompt corrective action (PCA) triggers as a result of the financial crisis. These credit unions will need to raise capital at a time when the outlook for credit union net income – the source of retained earnings – is not particularly strong.

• By law – not regulation, as is the case for other insured depositories – credit unions must maintain a 7% net worth (or leverage) ratio in order to be considered “well capitalized.” The law also specifies that only retained earnings constitute net worth for credit unions. All other U.S. depository institutions and most credit unions in other countries are permitted various forms of alternate or supplemental capital.

• Credit unions and their members face a protracted period of reduced member service, disadvantageous member pricing, and very slow growth, unless Congress allows credit unions to access supplemental forms of capital.

• Supplemental credit union capital will reinforce and strengthen the regulatory incentive for credit unions to remain exceptionally safe and sound, and, will allow credit unions to do even more to serve all their members. This would benefit all credit unions whether they use the authority or not.

LEGISLATIVE BRIEFING PAPER

CREDIT UNIONS ARE THE BEST WAY FOR CONSUMERS TO CONDUCTTHEIR FINANCIAL SERVICES

Credit unions are not-for-profit financial cooperatives. Overall, nearly 92 million U.S.consumers are member-owners of, and receive all or part of their financial services fromthe nation's 7,600 credit unions. Credit unions are a small, but constant and stablepresence in the financial services industry. Credit unions hold about 6.7% of householdfinancial assets, up from about 5.5% in two decades.

As democratically owned and controlled institutions, credit unions take pride in their"people helping people" philosophy. Credit union boards of directors are elected bymembers; each member has an equal vote, regardless of how much he or she has ondeposit. Credit unions have no outside stockholders, so after reserves are set aside,earnings are returned to members in the form of dividends on savings, lower loan rates oradditional services. Because a credit union is in business to serve its members and notto make profit for anonymous stockholders credit unions provide superior memberservice and consistently rank first among financial institutions in consumer satisfaction.

Credit unions primarily engage in consumer, residential real estate and small businesslending with their members. Credit unions did not engage in the activity that caused thefinancial crisis, and they did not need to be bailed out, like for-profit banks. While creditunions were affected by the crisis, credit union asset quality remains very high in thecurrent shaky market with first mortgage delinquencies at 2.29% and overall loandelinquencies at 1.75% at the end of the third quarter 2010. Credit union capital is equalto 10% of total assets (far above the 7% regulatory minimum to be considered "wellcapitalized").

All Consumers Benefit by Having Credit Unions in the Marketplace

Benefits to Credit Union MembersLower interest rates and fees than for-profit banksHigher rates of return on deposits than for-profit banksOne member, one vote gives credit union members a voice in credit unionoperationsGreat service from a financial institution that exists to serve members, notenrich shareholders.

Benefits to All ConsumersThe presence of credit unions in a market motivates banks to keep their ratesand fees competitive, benefiting all consumers.Credit unions provide stability to the financial industry.Credit unions did not need a taxpayer bailout because the not-for-profitstructure discourages excessive risk-taking.

Number of CUs 126 Number of Banks 144 Federally chartered 61 State chartered 65

Credit union market share of CU/Bank assets 6.3% Bank market share of CU/Bank assets 93.7%Average size $120.5 Average size $1,575.6Total assets $15,176.7 Total assets $226,886.2 Subchapter S assets $7,545.6Members 1,736,893Membership/Population 37.1%

Estimated Sub S foregone federal tax revenue $4.3Estimated federal income tax $24.4 Estimated federal income tax -$350.3

Stockholder dividends $45.3 Estimated directors fees $20.0

Average Interest Rates Average Interest Rates One-year certificate 1.23% One-year certificate 0.89% Money market accounts 1.17% Money market accounts 0.68% Auto loans 4.50% Auto loans 6.42% Classic credit card 11.33% Classic credit card 13.43%

Alternative market share calculation Alternative market share calculationTotal deposits $13,292 Total deposits in institutions w/ branches in state $82,059Market share of deposits 13.9% Market share of deposits 86.1%

Number of CUs 7,437 Number of Banks 7,747 Federally chartered 4,552 State chartered 2,885

Credit union market share of CU/Bank assets 6.4% Bank market share of CU/Bank assets 93.6%Average size $123.3 Average size $1,716.6Total assets $916,713.3 Total assets $13,298,492.9

Subchapter S assets $499,961.7Members 91,492,527Membership/Population 29.8% Estimated Sub S foregone federal tax revenue $1,342.2Estimated federal income tax $617.7 Estimated federal income tax $36,784.6

Stockholder dividends $30,604.1Estimated directors fees $1,156.5

Average Interest Rates Average Interest Rates One-year certificate 0.99% One-year certificate 0.80% Money market accounts 0.80% Money market accounts 0.61% Auto loans 4.39% Auto loans 5.68% Classic credit card 11.71% Classic credit card 12.22%

Source: All financial data is September 2010. Average interest rates are as of September 30, 2010 source: Datatrac. Population taken from Census Bureau Estimates for July 2010.

Credit union data is from NCUA; Bank data is from FDIC, directors fees were estimated using the America's Community Bankers Compensation Survey Results.

Produced by CUNA's Economics & Statistics Departmen t.

National

Subchapter S 2,426

Credit Unions Banks/S&Ls/Savings Banks

($ in Millions)

AlabamaCredit Union Fact Sheet

Subchapter S 44

Institutions Chartered in Alabama Credit Unions Banks/S&Ls/Savings Banks

Number of CUs 174 Number of Banks 253 Federally chartered 98 State chartered 76

Credit union market share of CU/Bank assets 21.6% Bank market share of CU/Bank assets 78.4%Average size $242.4 Average size $603.9Total assets $42,180.1 Total assets $152,790.6 Subchapter S assets $10,470.0Members 4,555,968Membership/Population 24.7%

Estimated Sub S foregone federal tax revenue -$31.0Estimated federal income tax -$48.1 Estimated federal income tax $107.2

Stockholder dividends $50.1 Estimated directors fees $42.6

Average Interest Rates Average Interest Rates One-year certificate 0.78% One-year certificate 0.67% Money market accounts 0.66% Money market accounts 0.66% Auto loans 4.15% Auto loans 4.92% Classic credit card 12.91% Classic credit card 10.32%

Alternative market share calculation Alternative market share calculationTotal deposits $36,423 Total deposits in institutions w/ branches in state $410,145Market share of deposits 8.2% Market share of deposits 91.8%

Number of CUs 7,437 Number of Banks 7,747 Federally chartered 4,552 State chartered 2,885

Credit union market share of CU/Bank assets 6.4% Bank market share of CU/Bank assets 93.6%Average size $123.3 Average size $1,716.6Total assets $916,713.3 Total assets $13,298,492.9

Subchapter S assets $499,961.7Members 91,492,527Membership/Population 29.8% Estimated Sub S foregone federal tax revenue $1,342.2Estimated federal income tax $617.7 Estimated federal income tax $36,784.6

Stockholder dividends $30,604.1Estimated directors fees $1,156.5

Average Interest Rates Average Interest Rates One-year certificate 0.99% One-year certificate 0.80% Money market accounts 0.80% Money market accounts 0.61% Auto loans 4.39% Auto loans 5.68% Classic credit card 11.71% Classic credit card 12.22%

Source: All financial data is September 2010. Average interest rates are as of September 30, 2010 source: Datatrac. Population taken from Census Bureau Estimates for July 2010.

Credit union data is from NCUA; Bank data is from FDIC, directors fees were estimated using the America's Community Bankers Compensation Survey Results.

Produced by CUNA's Economics & Statistics Departmen t.

National

Subchapter S 2,426

Credit Unions Banks/S&Ls/Savings Banks

($ in Millions)

FloridaCredit Union Fact Sheet

Subchapter S 49

Institutions Chartered in Florida Credit Unions Banks/S&Ls/Savings Banks

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Prepared by CUNA Legislative Affairs February 2011

The Value of the Credit Union Tax Status

What are the Policy Implications?

• There is no hiding the fact that the Federal government faces a significant budget crisis. A Presidential Commission recently recommended eliminating all tax expenditures.

• The credit union tax status benefits all consumers – credit union members and those who are not credit union members. While the credit union tax expenditure “costs” the federal government approximately $600 million annually, consumers benefit to the tune of $10 billion annually because credit unions are tax-exempt.

• Credit union competition helps keep bank and savings and loan prices lower. For example, credit unions offering credit cards now charge lower interest rates than most other lenders (on average by two or three percentage points). Imagine how expensive other lenders would make credit cards, or auto loans, if credit union competition did not exist!

• Further, the existence of credit unions in the marketplace provides consumers with access to consumer-friendly financial services. If credit unions were taxed, product pricing would increase, and, as a result, there would be little incentive for a cooperative-financial institution to exist. This would leave low to moderate income consumers seeking financial services either at for-profit banks (more expensive products) or predatory lenders. The motives of credit unions are different because they are not-for-profit. Credit unions are in business for their members, not to make profits for anonymous shareholders.

What are the Implications for Credit Unions?

• Eliminating the credit union tax status eliminates credit unions. It is that simple, and given what our economy has just been through, that would be a shame for consumers.

o Even though credit unions were affected by the financial crisis, none of the problems that precipitated the crisis were caused by credit unions. This is because the motives of credit unions and the incentive structures are different from for-profit financial institutions. If credit unions are taxed, there is no incentive for credit unions to remain not-for-profit; they will convert to banks; and our economy will lose the only sector of the financial industry that is not driven by profit, but rather driven by a dedication to serve its members.

o Credit unions are people helping people; unlike the banks, they are not people using people to generate profits for shareholders.

• Credit unions are the best way for consumers to conduct their financial services. Taxing credit unions takes this option away from consumers, and will drive up the cost of financial services for all.

Did You Know? • Congress has provided the credit union federal tax-exemption because of the not-for-profit,

cooperative structure of credit unions, and the special mission credit unions have to serve consumers.

• The credit union tax status is not based on the size of credit unions or the products and services that they offer; it is based on the credit union structure.

• This rationale for the tax-exempt status has been ratified several times by Congress. Our Ask:

• Members of Congress should be outspoken in their support for the credit union tax status, and should not use the tax status as a mechanism to prevent improvements to the Federal Credit Union Act.

Prepared by CUNA Legislative Affairs February 2011

Interchange Fees

What are the Policy Implications? • Credit unions issue debit cards and credit cards to their members. Interchange revenue from

the use of these cards is vital to credit unions to support the expense of card programs. Interchange fees allow business costs, including operating expenses, fraud risk management, and the risk of consumer nonpayment, to be shared by the payments participants.

• As part of the Dodd-Frank Act, Congress enacted provisions that regulate the debit interchange rates and give merchants more control over a consumer’s use of debit cards and credit cards at the point of sale and the route through which the transaction is processed. These provisions directed the Fed to determine a debit interchange rate taking into consideration a limited set of factors. As a result of this constraint, the Fed set a capped rate—12 cents per transaction—that is significantly lower than the cost of providing debit services and does not reflect a percentage of the total transaction exposure to the credit union.

• Specifically, the Dodd-Frank language prohibits the Federal Reserve from taking into consideration all of the costs of the payment system when regulating the debit interchange fee to establish a debit rate that is “reasonable and proportional” to the “incremental” cost of the individual transaction.

What are the Implications for Consumers? • Increased costs for consumers: For credit union members, government intervention in

debit interchange fees will result in cost-shifting from merchants to consumers and increased fees for consumers to obtain debit cards. Interchange enables and supports the convenience of debit cards as a valuable feature of a checking account.

• Decreased competition for consumers: Debit cards obtained through credit unions are valued by consumers looking for a full service checking account. By managing a debit card through a credit union, a member is able to effectively access and manage their account. Interchange enables credit unions of all sizes to issue debit cards for its members.

Unfair disruption of marketplace: The debit interchange provision unfairly disrupts a functioning marketplace by requiring credit unions and banks to accept a capped rate for service that is less than the cost of providing the service. The reduction in the merchants’ debit interchange will shift to the consumers; resulting in possible higher fees, usage restrictions, and reduced access to a convenient and cost-effective payment card system.

Did You Know? • Interchange fees are not paid to Visa or MasterCard. Interchange fees are paid by merchants to

credit unions and banks that issue debit and credit cards, and represent the merchants’ fair share of the cost of the payment card system.

• Even though Congress exempted most credit unions from the recently proposed cap on debit interchange fees, these rules will affect how credit unions serve their members, because the law and rules do not give the Federal Reserve the authority to enforce the exemption. As a result, the new rules will directly and indirectly affect credit unions and drive up the cost of providing checking accounts and debit cards to credit union members.

Our Ask:

• Congress needs to stop, study and start over. Members of Congress should support legislation that stops the implementation of the Federal Reserve debit interchange regulation so that the impact on consumers and small issuers can be studied, and so Congress can start over.

Prepared by CUNA Legislative Affairs January 2011

Credit Union Small Businesses Lending

What are the Policy Issues? • America’s small businesses are the engine of growth of our nation’s economy. The effects of

the financial crisis of the past few years have spread to all types of lending, resulting in a reduction in the availability of business credit.

• The cap on credit union member business lending (currently 12.25% of the total assets of the credit union) has no economic, safety and soundness or historical rationale.

o Credit unions have been lending to their business-owning members for a century. o Credit union loan losses (net charge off rates) for business loans are much lower than

those for business loans made by banks.

• At a time when banks are withdrawing credit from America’s small businesses, credit unions have actually been expanding credit to small businesses, but with more credit unions approaching the cap, this growth is threatened. It makes economic sense to restore credit unions’ full ability to lend to their business-owning members.

What are the Implications for Small Businesses? • Most credit union loans are what are generally considered small business loans. In fact, the

average credit union business loan is approximately $220,000. Therefore, when a credit union lends to one of its business owning members, that money stays in the community the credit union serves and helps employ area residents.

• Banks have been reducing credit availability, and even after receiving $30 billion of taxpayer money, banks still are not meeting the demand for small business loans. The banks’ failure to lend to small businesses perpetuates the economic crisis. Letting credit unions do more lending will put money into local communities and may provide banks with incentive to do more lending themselves.

Did You Know? • Credit unions have been making member-business loans (MBLs) since their inception in the early

1900s. In the first 90 years of their existence, there was no MBL cap on credit unions. The current cap is an arbitrary limit imposed by Congress in the Credit Union Membership Access Act of 1998 (CUMAA).

• In the next year, credit unions could lend small businesses an additional $10 billion, helping them to create over 100,000 new jobs if Congress increases the statutory cap on credit union business lending. This can be done without costing the taxpayers a dime and without increasing the size of government. Unlike banks, credit unions do not need taxpayer assistance to encourage them to do more business lending; credit unions only need authority from Congress.

Our Ask:

• Congress should enact legislation which increases the credit union member business lending cap from 12.25% of assets to 27.5% for well-capitalized credit unions and adds significant safeguards to ensure that qualifying credit unions do this additional lending safely and soundly. This approach has been endorsed by the Obama administration.

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Prepared by CUNA Legislative Affairs January 2011

The Need for Supplemental Capital

What are the Policy Implications?

• The recent financial crisis led to a substantial drop in the average credit union capital ratio – from 11.4% at the end of 2007 to 9.9% as of the end of 2009.

• While the credit union movement as a whole remains very well capitalized, a number of credit unions are close to or past the prompt corrective action (PCA) triggers as a result of the financial crisis. These credit unions will need to raise capital at a time when the outlook for credit union net income – the source of retained earnings – is not particularly strong.

• Long term influences on credit union net income are not promising. Net interest income, essentially the difference between what credit unions earn in interest on loans and investments and what they pay in interest and dividends on savings has been on a long-term downtrend caused by intense competition on both sides of the balance sheet. This pressure is unlikely to abate significantly going forward. In addition, interchange income, an important source of non-interest revenue, is under political pressure and is likely to diminish.

What are the Implications for Credit Unions?

• Capital is king for all financial institutions. As credit unions battered by the financial crisis recover in the coming few years, rebuilding capital ratios will be paramount.

• Without access to alternate capital, and with earnings power facing headwinds, credit unions and their members will face a protracted period of reduced member service, disadvantageous member pricing, and very slow growth, unless Congress allows credit unions to access supplemental forms of capital.

• Supplemental credit union capital will reinforce and strengthen the regulatory incentive for credit unions to remain exceptionally safe and sound, and, will allow credit unions to do even more to serve all their members.

Did You Know? • Credit unions remain the most highly regulated and restricted of all insured financial institutions

and stand out as the only depository institutions in the United States without the ability to issue some form of capital instruments to augment retained earnings to build capital.

• Credit unions historically have had the lowest default/delinquency rates in virtually all categories of loans and have maintained average net worth ratios well in excess of those held by banks.

• By law – not regulation, as is the case for other insured depositories – credit unions must maintain a 7% net worth (or leverage) ratio in order to be considered “well capitalized.” The law also specifies that only retained earnings constitute net worth for credit unions.

• All other U.S. depository institutions and most credit unions in other countries are permitted various forms of alternate or supplemental capital.

Our Ask: • Congress should modify the definition of credit union net worth to include supplemental forms of

capital for credit unions.