Bank Charter Option Coalition Picks up Another CU Figure in Umholtz

WASHINGTON – The Coalition for Credit Union Charter Options, an organization advised by former credit union executives and which lobbies for credit unions’ ability to convert their charters to those of mutual banks, has added another credit union figure to its team. Marvin Umholtz, a former lobbyist with CUNA’s governmental affairs department in Washington and a well-known credit union industry figure has joined the team. Umholtz will serve as the Coalition’s Membership Director and in a press release announcing his new tenure called the Coalition “the voice of reason.” “I spent 20 years as a registered lobbyist at the state and national levels fighting to expand credit union choices,” Umholtz said. “Lately, I have been shocked to see the self-appointed `philosophy police’ imposing their biases and trying to limit choices of credit unions.” Lee Bettis, Coalition executive director, said that in the weeks to come Umholtz would contact credit union leaders as part of a membership drive for the Coalition. Currently the Coalition has not been public about its membership, but is associated with noted banking lobbying firm the Washington D.C. based Butera and Andrews. Umholtz explained that the Coalition’s job will only be part-time and that he will remain with his own consulting firm, Umholtz Strategic Planning & Consulting Services, headquartered in Castle Rock, Colorado, as well. He admitted that he “doesn’t have the passion” that others do on this issue and that, if he had been hired by the Colorado Credit Union League (where he was up for a job), and if the League had taken a position opposing credit union charters, he would have backed the League position. Nevertheless he said he believes firmly that credit unions which feel the need to change charters should be able to do so. “It may only finally be a very small minority that converts in the end,” Umholtz said, “but if those institutions need to make that move, they should be able to make it,” he said. Umholtz said the Coalition plans to embark on a direct mail campaign to promote membership very soon and predicted that the organization will have 1,000 members by the end of the year. He said he would also encourage members to gradually step up to claim their membership in the organization so that there could be more transparency about the organization. The organization has said that it will not reveal any names of its members because of the “flack” and harassment they would receive because of their support of credit unions changing their charters to mutual banks. Umholtz outlined five broad categories of institutions which, he explained, would be likely Coalition members. “Credit unions which are planning to convert or expect to try to convert from now until a five-year horizon.well that’s a no brainer, they should be members,” Umholtz said. “Then there are credit unions which think they might convert eventually and credit unions which aren’t sure they will ever convert,” he added. “They want to keep the option open in case they ever need it.” The final two categories of potential members are those who have no plans to convert but who believe credit unions should be able to do so as either a good economic or institutional move or as a matter or principal. “These would be our members who are most motivated by charity,” Umholtz said, “because they don’t have any self-interest in the issue at all.” He also asserted that many don’t comprehend how many different shades of this issue that there are. Among people who support credit unions being able to become banks, Umholtz declared they come with very different views from those who believe the credit unions should be able to convert but that none should actually do it, to people who believe that all credit unions should convert. -