Credit Unions vs Commercial Banks – GSEs all over again?
Credit unions want to do ‘the right thing’ and make more loans to small biz. Sounds all well and good and noble and Obama-like.
Except to say that before we all collectively sign on THAT dotted line – which will inevitably be buried in the NEXT jobs creation / stimulus bill worth billions of all of our tax-payer funds, we SHOULD read the fine print?? Just thinking outloud and noticed this story hit up in WSJ a short while ago. Read a couple of times and we’re asking IF this doesn’t WREAK of GSEs part 2? Credit Unions already enjoy subsidy of tax exemption and Bernanke has suggested that was plenty enough. Stoner of the ABA (defending the commercial banks) ALSO weighs in, as one might expect, defending his turf.
Agree or not, it is certainly something worth paying attention to. We think it has macro impact and should be important for rates – space (more lending + better econ + MORE jobs + LOWER U-Rate = all add up to higher/steeper curves … and the opposite hold IF this proposal gets shot-down AND these credit unions cannot make more loans, no?):