This was written as a response to a letter to the editor that appeared on American Banker Online . Your letter is full of the false charges that have been perpetuated by the American Bankers Association and other bank trade groups for many, many years. Second, while credit unions do offer some of the same products as for-profit banks, their product offering does not determine their tax status. Tax status is based on structure . That is why we, as institutions, are exempt from federal income tax.
Similar situations exist all through American life.
It's the structure , Mr. Freeman. Since you have been led to believe that credit unions have such a competitive advantage, I would remind you that your bank could switch charters and become a credit union. I didn't think you would be. I suspect you'll want to stay in your for-profit banking world. There is nothing wrong with that.