WASHINGTON—A long-time champion of credit unions in Congress, Sen. Paul Sarbanes, has died. Sarbanes, who served from 1977-2007 in the Senate representing Maryland, including on the Senate Banking Committee, was 87.
Sarbanes is best remembered in the broad sense for the Sarbanes-Oxley Act of 2002, cosponsored with Rep. Michael G. Oxley (R-OH), which was adopted in response to the scandals involving Enron and other companies and which strengthened corporate governance and created a federal oversight board for the accounting industry
But Sarbanes is remembered within credit unions for his role in getting legislation passed and for urging CUs to live up to their history. In farewell remarks to CUNA’s GAC in Washington in 2006, Sarbanes called on credit unions to protect their tax status by continuing to fulfill their mission by promoting thrift and providing necessary financial services to those of modest means.
"I believe strongly in the traditional work that credit unions do," Sarbanes told the meeting.
Sarbanes played a critical role in the landmark Credit Union Membership Access Act, also known as HR 1151, which changed the Federal Credit Union Act to allow expansion to serve multiple groups within a field of membership.
Finest Hour
“Paul Sarbanes’ finest hour related to credit unions came at a big moment: during the Senate floor debate on final passage of HR 1151 in the summer of 1998,” said John J. McKechnie, senior partner with the advocacy firm Total Spectrum and who previously held positions with CUNA and NCUA. “As the Ranking Democrat on Senate Banking, he was magnificent in both his own statements on the need for the credit union relief legislation, but also in finessing possible last-ditch attempts to delay or even derail it. The 92-6 final margin in some ways stands as a tribute to his success. Credit unions should remember how his intellect and tenacity were on display when they made a real difference.”
Other Tributes
Other CU leaders also offered tributes:
- “Sen. Paul Sarbanes was a steadfast champion for credit unions during his more than three decades of service in Congress, including his 30 year-tenure in the Senate. His leadership in the Senate helped secure votes for the Credit Union Membership Access Act, ultimately enabling millions of Americans to benefit from the credit union difference,” said CUNA President/CEO Jim Nussle. “We were honored to host him several times at CUNA GAC, where he always shared his thoughts on the importance of credit union advocacy with attendees. His family and friends are in our thoughts and prayers."
- Former CUNA President/CEO Dan Mica praised Sarbanes as a “bulwark in the Senate” for his support of the Credit Union Membership Access Act, ensuring the legislation would not be derailed.
- CUNA noted Sarbanes also drafted legislation supported by CUNA and the Maryland Credit Union League in 2005 that would put in statute credit unions' ability to send remittances and cash checks for anyone eligible for their field of membership.