Magazine article American Banker

Illinois League's President Urges Unity in Clash with Banks

Magazine article American Banker

Illinois League's President Urges Unity in Clash with Banks

Article excerpt

CHICAGO -- The Illinois Credit Union League is urging its members to set aside arguments over expansion and to close ranks against potential assaults by bankers.

At the league's annual meeting last week, president Danieleting D. Plauda asked credit unions to endorse the league's "Unity Campaign" and not to side with bankers against credut unions that are expanding their customer bases.

Mr. Plauda's call for unity was backed by H. Allen Carver, director of the National Credit Union Administration's southeast region. He said that credit unions that oppose expansions now might change their tune in the future.

"You may not lose your sponsor today, but you may tomorrow," he said in a speech at the league meeting. "Sometimes what goes around comes arond."

Internecine War

Increasingly, small credit unions are protesting against their larger brethern because many have been granted charters to serve more groups or entire communities. Bankers see this growth as a breach of credit unions' original function, which was to serve a group of people with a "common bond."

Credit unions in Massachusetts and Nebraska have testified at regulatory hearings against the expansion of other credit unions. In comment letters to the National Credit Union Administration, some small credit unions opposed regulations that would make it easier for institutions to expand their customer base.

Some Michigan credit unions were even planning to support banks in their suit against a rapidly growing credit union in Portland, Mr. Carver said. The state league persuaded them not to do so, he said.

Self-Interest Cited

"The unity campaign is a protective plan," Mr. Plauda said in an interview. "The field-of-membership issue is potentially divisive among credit unions. We want to make sure that people recognize that while we may have some differences of opinion we'll resolve them amongst ourselves. …

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