Tom Barrett letter to Steve C. LaTourette, February 25, 1998

THOMAS VV BARRETT Congress of tfje Mmteis States 2)ouse ot EepresentatiOES '220 U-.OWJ«H0f»,c £ Bo lc (2021 22S-3S71 '55 WESTWto.sSrastr Roov 616 Milwaukee. Wl 53203 (414) 297-133- ®НлвЫпдЮп. ©<C 20515-49C3 February 25. 1998 The Honorable Steven C. LaTourette 1239 Longworth House Office Building Washington, D.C. 20515 Dear Congressmt lafftpa'ftureHe, °0|>y As you continue your efforts to pass the Credit Union Membership Access Act (H.R. 1151), I would like to work with you in improving your legislation. Although today’s Supreme Court ruling on the credit union common bond case was in favor of banks. Congress must fully examine the implications of this decision and determine what legislative response is appropriate. I am receptive to the idea of passing legislation that would clarify the "common bond” definition in a manner that will ensure the future safety and soundness of credit unions, the National Credit Union Administration Insurance Fund and continued membership growth. Credit unions play an important role in meeting the banking and credit needs of a huge segment of our society, and they should be afforded opportunities that will help them prosper, grow and compete effectively. Another important public policy issue to consider, however, is how to balance the need for continued growth by credit unions and access to membership with the needs of all individuals and communities, especially those that are underserved. As Congress addresses the issues surrounding the credit union common bond controversy, we must explore ways to meet this important challenge . Although the credit union industry as a whole makes up a relatively small portion of our financial services market and the vast majority of credit unions are small in size, there are very large credit unions with memberships in the hundreds of thousands and assets in the billions. Despite their size, these large institutions are not required to serve low- and moderate-income neighborhoods in their service area, even if it encompasses an entire state. Specifically, they are exempt from the Community Reinvestment Act (CRA).