NY Bankers Assn. Pres. Testifies Against Credit Unions Accepting Municipal Deposits

ALBANY, NY (01/25/2010)(readMedia)-- New York Bankers Association President & CEO Michael P. Smith today urged support of a provision in the Governor's Budget that would authorize thrifts to accept public deposits, but strongly opposed a provision that would authorize credit unions to accept the deposits of cities, towns, and other political subdivisions from across the State of New York in testimony before the Senate Finance Committee and the Assembly Ways and Means Committee.

"Only firms that pay taxes should be allowed to accept taxpayer dollars from local government entities," said Mr. Smith. "Banks are major contributors to the fiscal health of New York State, New York City and other municipalities through the income, sales, mortgage recording and other taxes they pay. Last year alone, the State's banks and thrifts paid more than $1 billion in income taxes to New York State."

"The contributions of the State's banks and thrifts go far beyond paying taxes. As the principal small business lenders in New York, banks and thrifts provide the funding for millions of jobs that allow the State to grow."

The New York Bankers Association is comprised of the community, regional and money center commercial banks and thrift institutions doing business in New York State. NYBA's members have almost 250,000 employees who are located in virtually every city, town and village in the State, from Jamestown to Montauk.

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For a copy of Michael Smith's testimony: http://www.nyba.com/government/1-25CUTESTIMONY.pdf