Simpson bases his argument on a recent loophole in the federal law. The federal law requires a credit union to serve a "well-defined local community." Shortly after the state Legislature adopted Utah's law, a federal credit union regulator ruled that everyone between Wendover and Wyoming is part of one "well-defined local community." Clearly, it is the federal rule that is broken! Congress is taking notice of these aggressive credit unions and will likely adopt a solution similar to Utah's law.

"Utah's law is the most damaging credit union legislation in the entire country."

In reality, a nationwide comparison reveals Utah to be one of the easiest states to join a credit union, as evidenced by our unusually high rate of membership. Our 1.3 million credit union members make up nearly 60 percent of residents — the sixth highest percentage in the nation. Utah's current law was passed after a thorough debate by an overwhelming majority of legislators in the House and the Senate. It was signed by Gov. Mike Leavitt. Mr. Simpson is wrong to blame and target one legislator.

"You can't hold back from members something they own."

Wrong again! Credit unions do it every year. The key difference is that the large credit unions withhold more profit in order to reserve against their aggressive growth beyond their membership group. In contrast, true credit unions that serve a specific group of people only withhold enough profit to serve their existing member group. Mr. Simpson fails to point out that banks are under the same obligation to maintain a specific level of reserves, but they must do it after taxes.

"George Bush supports the credit union tax exemption."

So do banks! However, those credit unions that have expanded to offer all of the same products to all of the same consumers as community banks should be willing to accept the same regulation and the same responsibilities as community banks.

We recognize that Mr. Simpson is new to this debate, but his arguments have already been considered and rejected by the courts and the Legislature. Anyone willing to take an objective look at both sides will understand that the Legislature did the right thing. Now Congress should follow suit.

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Howard Headlee is president of the Utah Banker's Association