[Congressional Record Volume 155, Number 126 (Wednesday, September 9, 2009)]
[House]
[Pages H9357-H9359]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




        RECOGNIZING 75TH ANNIVERSARY OF FEDERAL CREDIT UNION ACT

  Mr. HIMES. Mr. Speaker, I move to suspend the rules and agree to the 
resolution (H. Res. 556) recognizing the 75th anniversary of the 
passage of the Federal Credit Union Act and the vibrant Federal credit 
union community that was created as a result of this important piece of 
legislation.
  The Clerk read the title of the resolution.
  The text of the resolution is as follows:

                              H. Res. 556

       Whereas, on June 26, 1934, President Franklin Roosevelt 
     signed into law the Federal Credit Union Act, thus enabling 
     credit unions to be organized throughout the United States 
     under the charters approved by the Federal Government;
       Whereas the passage of the Federal Credit Union Act enabled 
     credit unions to play an instrumental role in helping hard-
     working people in the United States recover after the Great 
     Depression;
       Whereas credit unions have continued to exemplify the 
     American values of thrift, self-help, and volunteerism, 
     carving out a special place for themselves among the Nation's 
     financial institutions;
       Whereas credit unions operate with the credo, ``Not for 
     profit, not for charity, but for service'' and have 
     consistently reflected this philosophical tradition and the 
     cooperative spirit of ``people helping people'' that gave 
     birth to the Federal Credit Union Act;
       Whereas credit unions continue to provide valuable services 
     to their members, financial alternatives for the underserved, 
     and economic stimulus to our Nation even as we face a 
     financial crisis today; and
       Whereas, June 26, 2009, will mark the 75th anniversary of 
     the enactment of the Federal Credit Union Act: Now, 
     therefore, be it
       Resolved, That the House of Representatives recognizes the 
     75th anniversary of the passage of the Federal Credit Union 
     Act and the vibrant Federal credit union community that was 
     created as a result of this landmark piece of legislation.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Connecticut (Mr. Himes) and the gentleman from New Jersey (Mr. Garrett) 
each will control 20 minutes.
  The Chair recognizes the gentleman from Connecticut.


                             General Leave

  Mr. HIMES. Mr. Speaker, I ask unanimous consent that all Members may 
have 5 legislative days within which to revise and extend their remarks 
on this legislation and to insert extraneous material thereon.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Connecticut?
  There was no objection.
  Mr. HIMES. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, on June 26, 1934, President Franklin Delano Roosevelt 
signed into law the Federal Credit Union Act, establishing the Federal 
credit union system and creating the Bureau of Federal Credit Unions, 
the predecessor to the National Credit Union Administration, to charter 
and oversee Federal credit unions. June 26, 2009 marked the 75th 
anniversary of the passage of that act to create a not-for-profit 
financial institution formed for the purpose of promoting thrift among 
its members and providing them with a source of low-cost credit.
  Given the presence of some of the oldest Federal credit unions in my 
home State of Connecticut and their important role that they play in 
their communities, I am pleased to offer this resolution.
  Today there are more than 4,700 federally chartered credit unions. 
Together they serve nearly 50 million Americans and have nearly $500 
billion in combined assets. In my district alone, Federal credit unions 
serve about 60,000 members and manage approximately $430 million in 
assets. Private sector organizations such as Pitney Bowes, the 
Fairfield University employees, Arnold Bakers run Federal credit 
unions. The Bridgeport police, Bridgeport hospital run successful 
credit unions, labor organizations such as the UFCW Local 371 are 
running successful Federal credit unions.
  In these turbulent times, the not-for-profit cooperative business 
model of credit unions has been an example of safety and soundness 
providing credit at reasonable rates and important financial services 
to its members. Federal credit unions continue to seek opportunities to 
extend crucial financial services to underserved areas. They are 
inherently invested in the their members and in their communities and 
have helped their members in these troubling economic times by 
promoting financial security and economic well-being for all.
  I am happy to recognize the 75th anniversary of the passage of the 
Federal Credit Union Act and to acknowledge their valuable services to 
their members and communities across the Nation.
  Mr. Speaker, with that I reserve the balance of my time.
  Mr. GARRETT of New Jersey. I yield myself such time as I may consume.
  I rise in support of the legislation, and I commend my colleague on 
the other side of the aisle as well for his work on this piece as well 
and his support.
  If you look to the legislation, page 2, I think this is an 
interesting portion and it really cuts to the quick of what we're 
talking about with regard to credit unions. It says: whereas credit 
unions operate with the credo, not for profit, not for charity, but for 
service and have consistently reflected this philosophical tradition 
and the cooperative spirit of people helping people that gave birth to 
the Federal Credit Union Act.
  Well, when you think about it, that is exactly what the credit union 
industry is in this country: not for profit, not for charity but for 
service. And when I think of my district back in the great State of New 
Jersey in the Fifth Congressional District and the credit unions that 
are in that area, whether it was the very first credit union that I 
ever joined when I worked for Selective Insurance Company many years 
ago and the services that they provided to the employees of that 
company or other credit unions that have grown up over time in the 
various counties in northwest New Jersey and across the State of New 
Jersey, working to fill a particular niche for their members that 
perhaps were not being met by the rest of the industries for these 
individuals, they were doing so in a manner that was not for profit, 
the people coming together and saying that there is a need to be 
fulfilled and that they were going to make sure that they served it.
  Now, it's interesting as I come to the floor here to speak to the 
benefits of credit unions that our country has seen over the last 
several decades. I just returned from meeting with officials from the 
European Union and also from Great Britain where they, right now, in 
light of all the financial difficulties they are experiencing in their 
financial markets, are looking across the Atlantic to see whether they 
can learn some things from us to see what they can do to provide, A, 
some services and, B, some stability to their markets as well.
  And you know what the number one thing that the Conservative Party, 
the folks who I met with over there, said that they wanted to do and 
that was in Great Britain was to provide credit unions for the people 
of that country.

[[Page H9358]]

So they have a problem that's a little bit different from our country 
and that is that we have the traditional entrepreneurial spirit in the 
banking industry, that we have so many banks across the country, which 
is a good thing that provides services from the small individual right 
up to the large. They don't have it quite as extensively as we do in 
this country, and so they have a need even greater than we do to 
provide that niche marketplace for the individual.
  So they will be looking to the United States to take the lead in this 
area and probably emulate much of what we have already learned and 
instituted with regard to the solvency issues and the prudential 
regulation issues and the like in that industry. So it's good to come 
back to the United States and say that in this area we have been a 
leader on this matter, and I stand in support of this legislation.
  I reserve the balance of my time.
  Mr. HIMES. I thank the gentleman from New Jersey. It's good to know 
that as we do the hard work of recasting the regulatory apparatus in 
this country, that there are models including the credit unions that 
others are looking to as things that we do right.
  With that, I yield 3 minutes to the gentleman from Oregon (Mr. 
Blumenauer).
  Mr. BLUMENAUER. I appreciate the gentleman's courtesy in permitting 
me to speak on this bill. As we mark a year of near collapse of the 
American financial system, we're still trying to sort out exactly what 
happened and how to ensure it never happens again, to allow reckless 
behavior to drive our economy into the ditch.
  With that as a background, it is appropriate for us to commemorate 
the 75 years of service by one part of the financial sector that didn't 
add to the problem, America's credit unions. Starting 75 years ago as 
small scale not-for-profit groups of people joined together to provide 
essential affordable financial services, we have watched it grow over 
the years. Personally, I can testify as a satisfied member of credit 
unions for over 25 years, including two currently, I've had firsthand 
experience of the personal, high-quality service. While certainly 
they've grown and expanded their services and membership over the 
years, we've seen that they still work well, managing to provide 
helpful competition.
  When some of the largest banks in this country have stopped lending, 
not so with credit unions. Indeed, most credit unions have continued to 
lend to individuals and small businesses around the country, despite 
the challenging economic climate. Unlike many other lenders, credit 
unions saw their loans increase by 7 percent to over $575 billion in 
2008, up about $35 billion from the previous year. By providing 
financial diversity, credit unions lend strength to American 
communities. By providing competition for other financial institutions, 
credit unions help hold down costs for borrowers and provide greater 
access to capital, more choices for individuals.
  And on a small scale, I've watched as they've worked with people who 
otherwise would have fallen prey to payday lenders to design short-term 
loans to help people in financial difficulty who may not be 
particularly financially sophisticated.
  I thank the gentleman for introducing this legislation. I think it's 
important to recognize the contributions of the credit unions and to 
continue to work with them to provide their vital services to American 
consumers.
  Mr. GARRETT of New Jersey. I now yield such time as he may consume to 
Mr. Royce.
  Mr. ROYCE. Mr. Speaker, I'd like to thank the gentleman from 
Connecticut (Mr. Himes) for sponsoring this resolution. And this 
resolution recognizes the 75th anniversary of the passage of the 
Federal Credit Union Act and the vibrant Federal credit union community 
that was created as a result of this important piece of legislation. 
The purpose of this law passed back in 1934 was to make credit 
available and to promote savings through a national system of nonprofit 
cooperative credit unions.

                              {time}  1130

  This act established what is now the federal credit union system, and 
it created the Bureau of Federal Credit Unions, which eventually became 
the National Credit Union Administration. Its intent was to charter and 
to regulate Federal credit unions.
  While much of the economic downturn originated in the financial 
crisis, credit unions, for the most part, did not play a major role in 
the excessive risk-taking, over-leveraging or lax underwriting 
standards. Unlike many of the other mortgage originators throughout the 
housing bubble, credit unions held most of the mortgages they 
originated. They held them in their portfolios. As of late last year, 
roughly 70 percent of credit union mortgage originations were held in 
portfolio with only 30 percent having been sold into the secondary 
market.
  Because credit unions generally took a conservative approach to 
banking, they avoided many of the problems that we saw in other 
institutions. This approach has left them well-suited to play a 
significant role in the economic recovery.
  Certainly, the 90 million credit union members nationwide will 
continue to rely on these institutions for their everyday banking 
needs. I think it is worth noting the impact credit unions have had on 
communities around the world. Credit unions provide a great opportunity 
for people to pool resources. Thereby, they create an important source 
of liquidity for personal or capital investment.
  Serving on the Foreign Affairs Committee has given me the opportunity 
to work on issues impacting countries around the globe and to see 
credit unions at work around the globe. In this capacity, I have seen 
credit unions take shape and give hope to thousands looking for a 
better life.
  Credit unions have helped and continue to help many African countries 
build a safe financial system for the first time. The fact of the 
matter is that credit unions work whether they're in Orange County, 
California or in Johannesburg, South Africa. They help families save 
hard-earned money, buy cars, purchase homes, and send their children to 
college. Indeed, credit unions are helping the futures of over 90 
million members across this country and of countless others around the 
globe.
  In closing, I would like to again thank the gentleman from 
Connecticut (Mr. Himes) for taking the lead on this resolution. 
Hopefully, the credit unions that have served so many communities 
around our country will continue to do great work.
  Mr. HIMES. I thank the gentleman for his very apt observations.
  Mr. Speaker, clearly, we are in agreement here that credit unions are 
unique entities to be studied for the fact that they better, perhaps 
than other entities in our financial services world, align the 
interests of their shareholders with the interests of their customers, 
and as the gentleman from Oregon observed, are often the first point of 
entry into the formal financial system for families and for people who 
otherwise would be using informal or shady mechanisms of credit. As my 
friend from New Jersey points out, they're a model internationally and 
not just for foreign countries but for those of us who are really 
intent on studying how one balances prudence with the necessity for the 
availability of credit.
  I urge my colleagues to pass House Resolution 556, and I reserve the 
balance of my time.
  Mr. GARRETT of New Jersey. Mr. Speaker, I would just close then by 
thanking the gentleman from California (Mr. Royce) for taking the lead 
role as the Republican sponsor of this legislation and also for his 
work in the past with regard and on behalf of credit unions as well and 
also for making the significant point that he just did, which is, with 
regard to this time of financial crisis, that the American public could 
look to the resounding, strong support of the credit unions. So I thank 
Mr. Royce for his lead role, and I appreciate the role Mr. Himes as 
well has played in bringing this legislation to the floor.
  Ms. WATERS. Mr. Speaker, I rise today to support H. Res. 556, which 
recognizes the 75th anniversary of the passage of the Federal Credit 
Union Act and the vibrant Federal credit union community that was 
created as a result of this important piece of legislation.
  The Federal Credit Union Act was created to promote savings, fight 
against unfair lending practices and extend credit to people to whom 
banks and other financial institutions forgot.

[[Page H9359]]

  I have long been a supporter of credit unions, especially federal 
credit unions. There was a period of time when the major banks and 
other financial institutions abandoned many Los Angeles communities, 
including those within my district. Federal credit unions did the 
opposite and decided to invest in the people of communities such as 
Inglewood, Hawthorne, Gardena and Manhattan Beach. Credit unions have 
made a strong commitment to serve the communities where their members 
reside and have created a model more financial institutions should 
follow.
  I am proud to recognize the improvements credit unions have made in 
Los Angeles and across our country. I urge other members to join me in 
supporting H. Res. 556.
  Mr. GARRETT of New Jersey. I yield back the balance of my time.
  Mr. HIMES. Mr. Speaker, I have no further requests for time, and I 
yield back the balance of my time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from Connecticut (Mr. Himes) that the House suspend the rules 
and agree to the resolution, H. Res. 556.
  The question was taken; and (two-thirds being in the affirmative) the 
rules were suspended and the resolution was agreed to.
  A motion to reconsider was laid on the table.

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