Bank group chief galls credit unions
Simmons took the helm of the American Bankers Association at the group's annual meeting in Palm Desert, Calif., pledging to focus on three main issues: "leveling the playing field" with credit unions; pursuing regulatory relief; and encouraging banks to become involved in financial literacy efforts.
Simmons was not available for comment Tuesday. However, Zions spokesman Rob Brough said Simmons' vision for the ABA is "a continuation of a trend," and that the issues — primarily those concerning credit unions — have been of concern to the association for some time.
Brough said legislation backed by the National Credit Union Administration, the Credit Union Regulatory Improvements Act of 2005, signals credit unions' attempt to grow beyond their charters, to compete unfairly against banks. The bill would, among other things, expand credit unions' business lending authority.
"This is the continuation of a trend, given the legislation, and their increase," Brough said. "This has been a bit of an issue here in Utah for some time and is becoming more of an issue on a national scale."
But Scott Simpson, president of the Utah League of Credit Unions, said the ABA under Simmons will try to "export" Utah's battles to other states.
"I think you'll see an attempt to export what we have gone through here in our state, and we've been predicting this for a long time," Simpson said. "This is our message: First, there is no crisis. This is something they've created in their attempt to control pricing in the marketplace. Second, it's really almost impossible for the ABA or even Mr. Simmons' organization to claim much detrimental effect on their bottom line because credit unions exist. His organization reports more revenue in a single quarter than all of us do in a year."
Patrick Keefe, spokesman for the Credit Union National Association, said the association is "concerned" about an ABA under Simmons' leadership.
"He has indicated over and over again that he sees no role for credit unions in servicing customers, and that is of concern to us," Keefe said. "Nevertheless, it doesn't stop us from doing what we do, in serving our members and finding better ways to serve — including becoming more flexible. We'll continue to pursue this agenda, and we'll deal with Mr. Simmons as we go."
Brough denied any implication that Simmons is pursuing a personal agenda.
The dispute with credit unions "has been an issue of concern to Harris for some time," Brough said. "But this is not him taking this to the ABA and saying, 'This is an issue we need to look at nationally.' "
Simmons previously has served as chairman of the ABA's Government Relations Council and on the association's board of directors, as well as its Professional Development Council. He also has led the Utah Bankers Association.
E-mail: jnii@desnews.com
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