Big Banks Trying to Eliminate Credit Unions

For obvious reasons, millions of depositors have been transferring their money from large banks to credit unions.  With their devotion to free-enterprise laissez-faire capitalism, the banking cartel’s response to this new competition has been to compete with credit unions by offering better deals and better customer service using their political muscle to tax and regulate those pesky credit unions out of existence.

Here are some more links.

(The linked article was written last July, but I didn’t know anything about this until yesterday.)

The Banking Syndicate is lobbying Congress to eliminate the federal tax exemption that credit unions have been receiving since 1934.

Frank Keating, president of the American Bankers Association, wrote to President Obama:

“Many tax-exempt credit unions have morphed from serving 'people of small means' to become full-service, financially sophisticated institutions.  The time has come to abolish this exemption.”

With Congress getting ready for a major overhaul of the tax code, this is the perfect opportunity for the Banking Cartel to destroy their competition once and for all.  They’ve been bombarding the Washington DC area with print and radio ads as well as bribing their prostitutes in Congress.

The credit unions’ federal tax exemption ends up costing taxpayers roughly $1.6 billion a year.  Let’s see, a multi-trillion dollar bailout for Wall Street vs. a $1.6 billion tax exemption for credit unions…

Credit unions depend on this tax exemption, since — unlike banks — they can’t raise capital through public stock offerings.  The president of the National Association of Federal Credit Unions said:

“They'll have to convert to banks, which is what the banks want.  Then they'd have, for lack of a better term, a monopoly.”

Mission Accomplished.