WASHINGTON—On the same day that Wells Fargo CEO John Stumpf was getting grilled by the Senate, as Congress delves into the Wells Fargo scandal involving the fraudulent opening of millions of consumer accounts, two CU leaders were speaking out about the credit union difference.
NAFCU President and CEO Dan Berger urged that lawmakers keep in mind what sets credit unions apart from the big banks as they investigate the issues at Wells Fargo. And PenFed CEO James Schenck appeared on a Washington news show to explain how credit unions are not the same as banks.
“Credit unions – not-for-profit, member-owned financial cooperatives – have been widely recognized for not causing the financial crisis and for their prudent business model,” Berger said in a statement. “We ask our lawmakers and regulators to keep in mind the critical difference of credit unions and the valuable services they provide to nearly 105 million Americans. We urge them not to delay much-needed regulatory relief for credit unions as they contemplate any new regulations to address the fraudulent practices of bad actors.”
Wells Fargo is facing some $185 million in fines – $100 million of it imposed by CFPB, the largest amount the Bureau has ever assessed – over the reported opening of more than 1.5 million unauthorized consumer deposit accounts and more than 500,000 credit cards.
As CUToday.info reported, John Stumpf, Wells Fargo’s chairman and CEO, faced hours of intense grilling and criticism during Tuesday’s Senate Banking hearing.
PenFed’s Schenck Tuesday appeared on Washington’s ABC-TV affiliate, and emphasized how the difference between credit unions and banks is “like night and day.”
“If I were a bank CEO my whole job is to maximize the return to the shareholders,” said Schenck during the broadcast. “So for a (bank) customer that means I want to pay you the least for your deposits and charge the most I can for your loans. As a credit union CEO I have the best job in the world. My job, and the job of all our employees, is to give value back to our member-owners.”
Schenck also addressed the PenFed Foundation and how the credit union gives back to the communities it serves.