Credit unions harmed by rules meant for Wall Street

As a member-owned cooperative, a credit union’s success is literally tied to the financial health of the people who walk through its doors every single day.

This symbiotic structure is why credit unions remain the safest and most consumer-friendly option in banking. It’s also a clear example of why you didn’t see the government bailing out credit unions after the 2008 financial crash, unlike the big banks.

Unfortunately, the federal government seems to have forgotten who was responsible for that crisis.

Regulations written in Washington and created to police the bad behavior of Wall Street have inexplicably been slapped onto credit unions, too.

These massive one-size-fits-all regulations — again, crafted for the largest financial institutions in the world — have forced the credit union, with limited resources as a not-for-profit financial institution, to increase loan rates to members, reduce dividends, reduce staff and not expand into new products and services for our members. In addition, I conservatively estimate that the credit union spends 20 percent of our staff time keeping up with all of the changing regulations and updating our policies and procedures. This equates to over $100,000 a year being allocated to regulation. Time and money that would be better spent serving our members.

Read on.

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