Not many people can say they’ve led an organization through one of the worst crises in modern history, let alone three. Dan Berger can. Berger joined NAFCU in 2006 as head of the association’s government affairs department. Shortly after, the world experienced the most severe economic crisis since the Great Depression. Brought on by overzealous, risky mortgage lending practices, the 2008 financial crisis drastically altered the financial services landscape and people’s perceptions of banking institutions. Fast-forward to 2020 and a global pandemic. The world was brought to a halt and life as we knew it completely changed in just one day. As people were forced to stay home, businesses across all industries faced the unprecedented challenge of operating in a socially distanced, remote environment. Just as life was beginning to return to normal in 2023, the U.S. financial system faced another crisis: the three largest bank failures since 2008. Initial reviews into what went wrong at the large, regional banks brought flashbacks to the housing crisis—poor bank management and risky decision making, spurred by profit-seeking executives and unmitigated concerns from regulators. Doing Right by Credit Unions Although the policymaking pendulum tends to swing wildly in response to crises, NAFCU and the credit union industry have unwavering leadership and a strong advocate in Berger to ensure regulations are not overly burdensome or restrictive of growth. And when bad policies are passed, Berger isn’t afraid of NAFCU taking a hard stance—the association has earned its reputation of being credit unions’ voice in Washington as it listens to members’ needs and builds its strategy based on feedback and data. In response to the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act, NAFCU was the only credit union trade association to advocate against the formation of the Consumer Protection Financial Bureau (CFPB) and its authority over credit unions. Berger reminded lawmakers and the bureau of this in 2020— on the Dodd-Frank Act’s own 10-year anniversary: “Today marks ten years since the Dodd Frank Act was signed into law and nine since the CFPB opened its doors. With them, we are reminded of the egregious practices of Wall Street that caused the 2008 financial crisis,” Berger said. “We are also reminded, however, that small community financial institutions were incorrectly looped into the 2010 law despite not being responsible for bringing the economy to its knees. Credit unions have had to do more with much less resources complying with regulations created to reign in big banks. “It’s time the credit union industry finally be exempt from the CFPB’s authority, for the Bureau to be led by a bipartisan commission, and for policymakers to work towards reforming rules that will create an environment where credit unions can better strengthen their members and communities.” Today, Berger is urging Congress to hold the bureau accountable and holding strong in his resolve to end their “War on Main Street” as it pursues misguided policies that will hurt consumers and small businesses the most—the very people and entities the CFPB was created to protect. When businesses were struggling to keep their doors open amid the pandemic and access to credit tightened, NAFCU was instrumental in ensuring credit unions were included as lenders in the critically important Paycheck Protection Program (PPP). As consumers’ trust in banks is once again tested, NAFCU and Berger stand ready to tout the credit union difference. Berger championed the credit union difference in the wake of recent bank failures and the safety and soundness of the industry. “For years, Americans have dealt with the consequences of risky bank behavior. The contrast in decision making was even clearer after the recent bank failures,” “For years, Americans have dealt with the consequences of risky bank behavior. The contrast in decision making was even clearer after the recent bank failures. Banks are comfortable to choose the risky path, chasing yields and losing consumers’ money, while credit unions are safe, secure, and reliable.” Berger testifying on behalf of credit unions before the House Small Business Committee in 2015. 13 THE NAFCU JOURNAL July–August 2023
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