L A Times — Banks lobby to kill credit unions.

Credit unions have been snatching customers from banks amid consumer frustration over rising fees and outrage over Wall Street's role in the financial crisis. 

Now banks are fighting back by trying to take away something vital to credit unions — their federal tax exemption.

With fast-growing credit unions posing more formidable competition to banks, industry trade groups are pressing the White House and Congress to end a tax break that dates to the Great Depression....

Credit unions said the effort to take away their tax exemption was simply an attempt to stifle competition and remove one of the only checks on bank fees for consumers.And it comes as some in Congress are pushing to loosen regulations on credit unions so they can expand their business further, including legislation that would lift a cap on the amount of money they can lend to businesses.

The tax exemption is crucial to credit unions, which by law can't raise capital through public stock offerings the way that banks can, said Fred R. Becker Jr., president of the National Assn. of Federal Credit Unions, a trade group with about 3,800 federally chartered members.

"They'll have to convert to banks, which is what the banks want," he said. "Then they'd have, for lack of a better term, a monopoly."

Los Angeles Times
Banks pushing for repeal of credit unions' federal tax exemption
Jim Puzzanghera

Also:

Miami Herald

Credit unions fight back against tax repeal efforts 
George Joseph | Dade Couty Federal Credit Union

At the moment, it’s a war of words, but very soon the debate to tax credit unions will hit the streets. 

This week, credit union supporters from South Florida and throughout the country will descend on Washington, D.C. to “Hike the Hill” and meet with lawmakers to stress the importance of keeping in place the federal tax exemption for credit unions.

The debate is nothing new. For years, the big banks have lobbied Congress to repeal the tax exemption status. This time around, they declared war.....

Any individuals who feel strongly about the taxation issue are encouraged to ... sign the “Don’t Tax My Credit Union” petition.