The 1990s: CU advocates mobilize, opening door for growth
In the early 1990s, credit unions across the nation were facing constant attacks from banks looking to decrease credit unions’ market share by alleging that credit unions received unfair tax breaks. U.S. credit unions responded with Operation: Grassroots, a campaign that culminated in a Washington, D.C. rally on February 28, 1991. More than 15,000 people, including more than 1,000 advocates from New York, gathered to defend the credit union movement and add their voices to lobbying and publicity efforts.
It was part of an advocacy effort that began in 1989, when a small group of North Carolina banks joined with the American Bankers Association to sue NCUA, claiming the agency had violated the 1934 Federal Credit Union Act by allowing AT&T Family FCU to add members who did not work for AT&T.
The case was repeatedly dismissed until 1996, when the U.S. Court of Appeals ruled in favor of bankers. This decision forced federal credit unions to confine their membership to the original group around which they had been chartered.
But rallying once again, credit unions scored a major national victory over banks, with resounding support from Congress. On April 1, 1998, the U.S. House of Representatives passed the Credit Union Membership Access Act (H.R. 1151) in a 411-to-8 vote; and, in July, the U.S. Senate passed the bill by a 92-to-6 margin. A week later, President Bill Clinton signed the act into law, ending a two-year struggle and authorizing federal credit unions to serve multiple groups with 3,000 or fewer employees.
CUNA Mutual Group has released its November 2017 Credit Union Trends Report with data collected in September. Notably, the report found credit unions added more than 3.964 million memberships in the first nine months of 2017, the fastest pace in credit union history – CUNA Mutual Group
Reminder: credit unions are encouraged to participate in the Credit Unions for Kids Winter Icon campaign to raise funds for the Children’s Miracle Network Hospitals that serve New Yorkers – The Point
The Department of Labor announced that its fiduciary rule will be delayed 18 months, making its effective date July 1, 2019 – CUToday
Bill Posey, R-Florida, introduced the Common Sense Credit Union Capital Relief Act, which would repeal NCUA’s risk-based capital rule – CUNA
President Trump’s nominee to head the Federal Reserve, Jerome Powell, indicated that he would bring a moderate approach to the central bank – The Hill
Almost 100,000 websites, including 482 of the 50,000 most trafficked, use session replay scripts, which record keystrokes, mouse movements, and scrolling behavior, along with the entire contents of the pages – CU Times
The advent of new voting technology has brought election-security threats that state officials are seeking to shore up with additional resources – Times Union
With special elections taking place next year, a unified Democratic conference should be able to take control of the Senate without needing Republican help – New York’s State of Mind