September 20, 2005
JS-2731

The Honorable John W. Snow
Prepared Remarks to the National Association of
Federal Credit Unions (NAFCU)
Washington, DC

Thank you so much for having me here today.

I meet and work with financial leaders every day, and it has not escaped my notice that credit unions tend to have great heart. That's especially important during times like these, when financial structure and resources are so very important to our fellow Americans, our brothers and sisters who have survived – and are surviving the aftermath of – Hurricane Katrina.

I believe it speaks to the strength, determination and heart of the credit union community that all 139 of the federally insured credit unions in the path of Katrina were at least partially operational as of the close of business last Friday. Cash and check cashing services are now available to those 681,000 Federal Credit Union members, and that's terrific news.

For some, services for now will be at a shared branch location – an important option that your members utilized during this difficult time. There is no doubt that branching helped restore services quickly to customers, and I applaud your teamwork on that effort.

I've been in touch with JoAnn Johnson at the NCUA about the need to ensure that NCUA's regulations are appropriate for the conditions that credit unions in the area are operating under.

I was pleased when NCUA advised credit unions they could assist consumers and members by doing things like waiving ATM fees for members and non-members, increasing ATM daily cash withdrawal limits, easing restrictions on cashing out-of-state and non-customer checks, waiving overdraft fees as a result of paycheck interruption and waiving early withdrawal penalties on time deposits

Allowances like these are so important to the victims of Katrina as they recover from this disaster, and I know that you need to hear, from your regulators, that the government is going to view your actions with an eye for the difficulty of the times and the generosity of your spirit. You are helping both customers and non-customers right now, and that is invaluable. It is appreciated.

I also appreciate that there are still some distressed institutions in the Gulf Coast. There is no doubt that full recovery and rebuilding will take a lot of time, a strong will and a vast amount of resources.

Your institutions will be part of that rebirth, and I appreciate very much the services that you will be giving to your customers going forward as they rebuild their lives.

As the nation – government, the private sector and charities – rebuilds infrastructure, homes and businesses, we must also help rebuild lives with a sense of hope and opportunity. Our overriding goal must be that everyone has an opportunity to build a better life for themselves and their families. We look forward to a time when victims take back control of their own lives and begin their promising futures. Nothing less is acceptable.

As the President said in his September 15th address to the nation, the task of rebuilding "will require the creative skill and generosity of a united country" and our vision of the future is not just to rebuild, but to rebuild "higher and better."

I know that you want nothing less, and will accept nothing less, for your customers.

I believe that we are fortunate to have a really strong, vibrant economy in this country, and that is going to be critical as we pursue rebuilding efforts. With a strong economy, we can afford to meet any challenge.

After devastating loss, hurricane survivors can look forward to a new start, and the President's vision is that the new life will be better than the one left behind.

And once hurricane survivors are on their feet, I know they will embrace being back in charge of their own lives, making their own decisions. Katrina derailed their independence for a short time, but they'll get it back. That's what Americans do.

Thanks to the generosity of a nation and our unique spirit of hope and independence, I am confident that the residents of places like New Orleans and Gulfport Mississippi and southern Alabama will recover. We picked ourselves up after 9/11 and other disasters, we have the will and the resources and the resolve to do so again.  I am confident we will again. It's the spirit of Americans to do so.

In the government, we are committed to helping the region re-build, to helping people re-build their lives. And we want to do so in a way that is fiscally responsible. We are a generous people, but we are also a prudent and responsible people. In government, we have a solemn responsibility to spend the peoples' money well, honestly, effectively.

Will the relief and reconstruction be costly? Of course it will – but I want to assure you that this Administration is not, and will not stray from our course of federal deficit reduction. With continued economic strength – which we will enjoy with the continuance of the President's good economic policies – we'll be able to help our neighbors and continue to reduce our deficit.

Thanks again for all the good work you do and will be doing over the coming months. Before I take your questions, I do want to reiterate something that I hope you already know – that that this administration understands the basic economic principle that you get less of anything you tax, and we don't want less of what you do. And that isn't going to change.

Thank you again for having me here today; have a terrific meeting.