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FROM THE OFFICE OF PUBLIC AFFAIRS September 10, 2003JS-733 Deputy Assistant Secretary for Financial Institutions Before the National Association of State Credit Union Supervisors Vail, Colorado Thank you very much for having me here today to address some of America’s leaders in the credit union industry. Representing both the CEOs of state credit unions as well as the supervisors which regulate them, NASCUS provides a unique forum for participants in this industry to meet together and discuss important ideas that affect not only state-chartered credit unions, but our nation’s economic health as a whole. As you well know, state and federally chartered credit unions play an important role in providing financial services to Americans who participate in all aspects of our national life. From teachers, to unions, to our policemen and firemen, to small businessmen and women across our country, credit unions allow individuals who share a common bond to come together and create their own associations to meet their financial services needs. Some of America’s credit unions rank among the largest financial services providers in their communities; others play a role not unlike that of the old Bailey Building and Loan Association in the movie “It’s a Wonderful Life.” In either case, credit unions play a vital role in ensuring competitiveness in America’s financial services industry by providing valuable options for Americans to choose where to place their deposits, and increasing opportunities to obtain credit. State-chartered credit unions play a uniquely important role in this process. The dual banking system, which allows institutions to choose whether to be chartered at the state or federal level, increases both our opportunities to access financial services and the likelihood that individuals will find creative new ways to provide those opportunities. The state-chartering system allows us to be more innovative with the range of financial services offered to consumers, and allows us to tailor our particular regulatory structures in a way that most meets the needs of our local communities. The best example of this is the frequency with which credit unions are able to switch their charters between the state and federal levels. I want to thank you for the leadership which you have shown in providing Americans with financial opportunities. I once had a visit with the President of one of our credit unions, who told me that her business wasn’t simply a way to make a living, but rather it was a vocation. This person’s credit union happened to be located in one of America’s poorest neighborhoods; most of her members, she told me, had not only never had a loan before; not only never owned their own homes; many had never even been in a bank. By providing these men and women with access to financial services, she was taking a step towards improving their lives and thus improving their community. And I know that her story was not atypical. I’m sure many of you recognize in her story your own experiences in fulfilling a mission to improve the lives of everyday Americans by providing them with the means to take their financial well-being into their own hands. This critical role, which credit unions play such an important part in filling, is invaluable to improving our country. Of course, in Washington we are also very concerned with improving the quality of life for all Americans. President Bush has taken the lead in the fight to provide Americans with control of their own economic well-being, and that leadership is invaluable at this time in our nation’s history. Tomorrow marks the second anniversary of the cowardly attacks of September 11. But even before the terrorists struck, our economy was in recession due to the burst of the market bubble and a general weakening in demand. The attacks of 9-11, occurring in the very heart of America’s financial sector, threatened to completely derail the economy and throw chaos into our economic life. President Bush responded to this threat with vigor. He proposed tax cuts which some in Washington couldn’t wait to attack, saying “now is not the right time.” But the President’s response was straight-forward: if our economy is slow, the answer is to allow people to keep more of their own money. The President knew that we weren’t going to climb out of a recession by having the government spend the people’s money; we would get out of recession by stimulating growth through allowing the taxpayers to keep more of what they earn. I don’t think I need to tell you who was right in the tax cut debate; the results speak for themselves. Under the President’s leadership our economy has begun to grow; we have seen promising results over the last few quarters in the GDP, business spending, and continued strength in housing starts and consumer spending. Real wages have also increased. Under the President’s leadership we have emerged from recession. Although we are not out of the woods yet, and fragility still exists in some sectors of the recovery, we are well on our way to meeting the President’s goal that every American who wants a job should be able to get one. Towards this end, the President recently announced his economic plan, entitled “A Full Agenda for the Creation of Jobs in America.” The President’s plan demonstrates a rock solid commitment to expanding growth and opportunities in the labor market. The President’s plan has six points to build employer confidence and create momentum to hire new workers by: * Making Health Care Costs More Affordable and Predictable. Health insurance * Reducing the Lawsuit Burden on Our Economy. President Bush has proposed, * Ensuring an Affordable, Reliable Energy Supply. Businesses depend on affordable and reliable energy. Energy shortages, price spikes, and blackouts disrupt the economy and discourage businesses from planning with confidence and adding new workers. President Bush has proposed a comprehensive national energy plan to upgrade the Nation's electrical grid, promote energy efficiency, increase domestic energy production, and provide enhanced conservation efforts, all while protecting the environment. * Streamlining Regulations and Reporting Requirements. Government has a * Opening New Markets for American Products. American workers can compete * Enabling Families and Businesses to Plan for the Future with Confidence. As the President has said, these specific steps will help us build on our economic recovery and move on to the next stage of economic progress - the sustained expansion of employment.
Of course, we cannot discuss the economy without taking into account the uncertainty that remains stemming from the continued threat of terror attacks. 9-11 reminded us again that we live in a world where many people despise us and our way of life; despise freedom and are envious of the blessings which liberty provides. This Administration has made combating terror its top priority. Even as we meet here today, there are thousands of American fighting men and women placing themselves in harm’s way so that the American way of life will survive. These heroes’ sacrifice makes what we do possible, and it is impossible to overstate their courage or the debt of gratitude we owe them. Likewise, the President has mobilized the Federal government to prevent terror here at home. The creation of the Department of Homeland Security was a critical step in reorganizing the government to focus our resources on stopping terror. Likewise, the Terrorism Risk Insurance Program, which is run out of the Treasury Department, exists to provide a temporary federal backstop in the terrorism insurance market. Thanks to this program, businesses across America are ensured that they have access to insurance for this new type of threat to their operations. This Administration remains committed to providing both economic and personal security to all Americans. The challenges we have faced since President Bush took office have been the most daunting to face our country in generations, but the President remains committed to ensuring that our economy is strong and our homes and families are secure. You in this room play an important role in meeting this challenge. Your leadership in your communities, in providing access to credit and financial services to your members, in providing prudent supervision of your institutions, is what allows us to own our own homes, run our own businesses and provide a better future for our children. Thank you for your dedication, and thank you for allowing me to visit with you today.
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