Areas that need fixing in the proposals, he said, include the tax exemption "so that it is only granted to federally insured deposit institutions" that are cooperatively structures, operate on nonprofit basis and have unpaid directors and no equity ownership for CEOs and executives.

There would also have to be assurances that "small FIDIs would not be crushed beneath additional regulatory burden."

All of this is an achievable agenda, said Annaloro. "In other words, in exchange for participation, diminished state oversight and possibly CRA, we get a fresh start with new regulators and full powers for future global competitiveness. I think we can tactfully survey our CUs on how they feel about alternative possibilities."

"Reregulation is coming eventually, whether or not we like it," he said, "Prudence dictates we leverage all opportunities to our advantage."

Meanwhile, other leagues joined in a loud chorus of criticism.

"The concept of a 'prudential financial regulator' would mean the loss of our independent regulator, with credit unions being overseen by a banking regulator and treated as banks and ultimately the demise of credit unions as we know them today," wrote James McCormack, president/CEO of PCUA in the league's daily e-mail newsletter.

McCormack vowed that PCUA would be contacting "each member of our congressional delegation in the very near future to express our concerns."

Pointing to the consumer-orientation of the industry, McCormack said the CU charter remains "the most consumer friendly option in the marketplace, and any regulatory structure change that would put the credit union charter in jeopardy would be detrimental to the consumers of Pennsylvania" and the nation.

Voicing opposition to the package the very day the Treasury Secretary suggested there would be delays in moving the concept along, the PCUA said it particularly appreciated the backing of its congressman, Representative Paul Kanjorski (D-Pa.).

The Pennsylvania congressman had issued his own statement saying he was apprehensive about the plan and adding, "We must preserve and protect the

unique cooperative nature of the American credit union system."

McCormack lauded Kanjorski for speaking out "so quickly following Treasury's announcement," and called the congressman "a great friend of credit unions and we appreciate his hard work in support of our efforts."

Like PCUA, the New York State Credit Union League also called the Treasury plan "radical, imprudent and counterproductive," with the league promising New York CUs "of every stripe would oppose the move, noting the damage to the dual chartering system the movement has long heralded as key to its success."

"By proposing the elimination of the federal credit union charter and the National Credit Union Administration and by severely restricting the continued viability of state-chartered credit unions," the industry would be eliminated, said William Mellin, president/CEO of the New York trade group.

In its statement, the Texas league cited the incongruity of eliminating CUs considering the positive role CUs "have been playing during the entire financial meltdown."

Richard Ensweiler, president/CEO of TCUL, wrote, "There is one industry that has remained healthy and sound–the credit union industry," and so "it makes no sense for the U.S. Secretary of the Treasury to dismantle the not-for-profit financial alternative that has managed to be free of the meltdown that has hit other financial sectors."

In California and Nevada, William Cheney, president/CEO of those leagues, declared, in a statement entitled "No Deal," that "once again credit unions are not part of the problem, but under this ill-advised U.S. Treasury proposal we would be wrongly swept into an unworkable attempt at a solution."

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