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Executive Letter: WBA Joins National Call for Treasury Review of Credit Unions

From the Desk of Rose Oswald PoelsBy Rose Oswald Poels

WBA joined with 52 other state bankers associations this summer in signing a joint letter to the U.S. Treasury Department. The letter urges the Treasury to conduct a study of the $2.37 trillion credit union industry and assess whether its current activities align with the tax-exempt status originally granted by Congress in 1934.

Congress created the Federal Credit Union Act over 90 years ago with the intent to expand access to affordable credit for people of modest means. Credit unions have since grown far beyond that mission, with more than 450 credit unions holding assets of at least $1 billion. Many operate nationally, acquire banks, sponsor professional sports teams, or generate tax-exempt income from affiliated businesses. In 2024 alone, credit unions acquired 22 banks with nearly $12 billion in assets.

The joint letter brings these trends into the spotlight as evidence that credit unions increasingly function like tax-paying banks while avoiding the same obligations of transparency and accountability. For example, federal credit unions are exempt from filing the IRS Form 990 that other nonprofits must submit, which leaves executive compensation and other data concealed from the public.

We are asking the Treasury to examine whether tax exemption is still justified, and to provide recommendations for legislative or regulatory changes. Among these could be requiring all credit unions to pay federal income tax and requiring federal credit unions to pay unrelated business income tax (UBIT) like other nonprofits.

The Treasury estimates that the credit union tax exemption will cost the government $32.2 billion by 2034, so this review is urgent and necessary. I believe this study will bring greater accountability and ensure that taxpayer dollars are not subsidizing institutions that have strayed far from their founding objective.

With 14 credit unions in Wisconsin now exceeding $1 billion in assets, WBA remains at the forefront of these discussions in Washington, D.C. We will continue to update our members as the Treasury considers next steps on this issue.

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Executive Letter: President Trump’s Executive Order on Debanking

From the Desk of Rose Oswald PoelsBy Rose Oswald Poels

Earlier in August, President Trump issued Executive Order 14331 called “Guaranteeing Fair Banking For All Americans.” Among other identified purposes, the Order states that: “Bank regulators have used supervisory scrutiny and other influence over regulated banks to direct or otherwise encourage politicized or unlawful debanking activities.”

The Order defines “politicized or unlawful de-banking” as any act by a financial institution to directly or indirectly restrict access to, or modify the conditions of, accounts, loans, or other banking services on the basis of a customer’s political or religious beliefs, or based on lawful business activities disfavored by the institution for political reasons.

Fair lending and related laws have existed for decades, and bankers have followed those laws throughout time. As a result, my initial view of the Order was that it is codifying or clarifying current law.

The order directs federal banking regulatory agencies to take various actions to implement intent. Many agencies, including FRB, OCC, and FDIC, have taken initial steps with their recent removal of reputational risk from supervisory expectations.

Additionally, the SBA sent a letter last week to lenders of actions to be taken by early December. Banks must review past and current policies that could be interpreted as encouraging politicized or unlawful de-banking and prepare a compliance report by January 5, 2026. Lenders failing to comply may risk punitive measures and lose good standing with the SBA.

These recent developments have once again inspired national attention around debanking and important questions about how they intersect with existing fair lending and other banking laws. I’ve fielded questions and concerns from our members about how these changes will affect daily bank operations, compliance practices, and relationships with customers.

WBA is committed to ensuring our members have the most current information and clarity. I invite you to attend our complimentary live webinar this Thursday, September 4, from 9:00 to 10:00 am CT. I will be joined by Peter Wilder, attorney with Godfrey & Kahn, as we review the executive order, SBA directives, and the current legal framework that governs fair lending.

This webinar is held specifically to support WBA bank members and will not be recorded in order to allow for candid discussions. We encourage you to bring questions

and participate in the Q&A session.

Registration is free but required. Please register one attendee per planned webinar connection to help us ensure sufficient capacity.

I look forward to speaking with you all on Thursday as we break down what these changes mean for your bank and your customers

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Executive Letter: The Penny Phase-Out

From the Desk of Rose Oswald PoelsBy Rose Oswald Poels

Earlier this year, the Treasury advanced President Trump’s plan to discontinue the penny. The final penny blanks are set to be minted in early 2026, and many members and their customers have a growing number of questions: Are pennies still available? Can banks continue to distribute pennies? How will businesses handle cash transactions moving forward?

Here are the key facts: 

  • Pennies are still legal tender. They remain useable for transactions, deposits, and withdrawals, though their availability will gradually decline as existing coins fall out of circulation. 
  • Production cost exceeds value. It costs about 3.7 cents to make a one-cent coin, marking the nineteenth consecutive year where manufacturing costs outweighed value.
  • Policy discussions are underway. Bills like the Common Cents Act seek to formalize this change and establish consistent rounding rules for cash transactions.
  • Other countries provide successful precedents. Canada, Australia, and New Zealand have successfully eliminated their lowest-denomination coins and use rounding rules for cash transactions. 
  • Estimated Effect on Consumers. Rounding cash transactions could cost U.S. consumers about $6 million per year in total, spread across millions of purchases. Most cash-users are unlikely to notice more than a penny or two difference over time.

All to say: Banks, businesses, and consumers will not be required to turn in pennies, nor will coins in circulation lose their value. Pennies would phase out slowly over time as they are spent. Cash transactions would likely be rounded to the nearest five cents, while digital transactions would remain exactly the same. 

I have recently heard from members that they are not able to order pennies in cash orders from the Federal Reserve. As a result of this change, I recommend members work with customers, particularly heavy cash-using business customers, to help them plan for the anticipated discontinuation. Perhaps consider a penny drive to collect pennies from customers similar to the efforts taken during COVID-19 times when coins were difficult to order from the Federal Reserve. This may help bridge a gap while customers and retailers adjust.  

WBA will continue to monitor policy developments to ensure our members have accurate information. We also encourage our members to keep an eye on our communications to prepare for customer questions on the penny phase-out.  

WBA remains committed to providing our industry with education and guidance during times of transition. We will continue to share updates as they become available. 

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Executive Letter: Share Your Insights — WBA Member Survey

From the Desk of Rose Oswald PoelsBy Rose Oswald Poels

As your association, our top priority is to listen and respond to your needs. Each year, the WBA Board of Directors holds a planning retreat to set our strategic direction for the next few years. This October, as we prepare for those discussions, your feedback will play a critical role in shaping our priorities.

WBA is proud to be among the top-tier banking trade associations in the country. Our mix of products and services offered through the non-profit side of WBA, as well as those offered through the for-profit side of WBA help diversify our revenue and contribute to our overall success. Banks that purchase products from our for-profit subsidiaries are directly supporting the breadth of services offered by WBA through intercompany expense sharing. As the industry evolves, so will WBA – knowing your priorities is critical to informing our dialogue and strategy.

We are asking you to take a few minutes to complete the 2025 WBA Member Survey. Your input will help guide the Board’s conversation and ensure that our plans reflect the realities and opportunities your institutions are experiencing.

The survey asks about the issues that matter most to you, including:

  • How effectively WBA responds to member needs
  • Policy priorities for the year ahead
  • Responsiveness of WBA staff to your questions
  • Training topics and professional development
  • Communication methods and the usefulness of WBA content
  • The association’s role in shaping the future of banking
  • Opportunities to strengthen engagement through events and initiatives
  • WBA’ s representation of member interests at the state and federal levels

The survey will take only about 10-15 minutes, and your candid responses will be invaluable in helping us improve the ways we serve you and the industry as a whole. There are also several opportunities for you to share comments and ideas, and I strongly encourage you to do so.

Please complete the survey by Friday, August 29, 2025.

Thank you in advance for sharing your perspective.

Click here to take the survey.

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Executive Letter: Celebrating WBA’s 2025 Highlights

From the Desk of Rose Oswald PoelsBy Rose Oswald Poels

As we approach the end of summer, I’m proud to reflect on the many ways the Wisconsin Bankers Association has strengthened our industry and advanced the mission of Wisconsin banks so far this year. Our many accomplishments would not happen without the support and active engagement of our members. Below are a few of our highlights achieved to date:  

Housing Grant Awards

Earlier this year, WBA awarded $60,000 in grants to six member banks in support of housing, economic development, and financial literacy initiatives across Wisconsin. These efforts ranged from emergency housing microloans and targeted financial literacy education to strategic efforts to increase Native American homeownership. These meaningful projects reflect the deep commitment of Wisconsin banks to strengthen their own communities.

Fraud Summit Success

In June, WBA hosted its first-ever Fraud Summit in direct response to member feedback requesting more resources to address increasingly complex fraud threats. This event brought in fraud experts and bankers from across the state to share insights on cyberattacks, payment fraud, social engineering, and AI-driven scams. We received overwhelmingly positive feedback, and we plan host the event again in the future to keep members educated on emerging threats.

Second Class of BOLT Leadership Academy

WBA is committed to cultivating the next generation of bank leaders. We launched our second class of BOLT (Building Our Leaders of Tomorrow) Leadership Academy, a program designed to equip emerging community bank leaders with advanced industry knowledge and a strong peer network. Members of the new cohort are already making an impact — a few participants represented Wisconsin at the American Bankers Association’s Washington Summit this past spring and spoke directly to policymakers.

Advocacy Wins

WBA’s advocacy efforts this year have rung in meaningful results for Wisconsin’s banking industry. On the federal level, we celebrated two major wins. In the “One Big Beautiful Bill,” Congress passed a modified version of the ACRE Act, which provides banks with a 25% federal income tax exemption on ag real estate loans which will help banks support their farm customers. Second, the Homebuyers Privacy Protection Act (the “trigger leads” bill), which restricts credit reporting agencies’ ability to sell consumer contact information after applying for a mortgage loan, passed the U.S. House and Senate and is awaiting the President’s signature.

These policy victories are the direct result of your grassroots engagement through WBA with elected officials. Moreover, through contributions to Wisbankpac and the Alliance for Bankers Conduit, we help ensure pro-banking candidates are elected to office at the state and federal levels.

Record Number of Associate Members

WBA associate membership reached 176, the highest number of associate members to date. These partnerships not only provide important resources to WBA, but also offer WBA members a wide variety of meaningful products and services.

I am very excited and proud of what we have all accomplished together so far this calendar year! I look forward to continuing this success as we move through the remainder of the year. Thank you for taking an active part in ensuring a strong future for the Wisconsin banking industry!

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Executive Letter: Trigger Lead Bill to Be Signed Into Law

From the Desk of Rose Oswald PoelsBy Rose Oswald Poels

I am excited to share that the Homebuyers Privacy Protection Act (H.R. 2808) — known as the “Trigger Lead” Bill — has been passed by the Senate. The bill cleared the House earlier this year and will now advance to the President’s desk to be signed into law. Passage of this legislation has been a top priority for WBA, and many members joined me in advocating for its passage over the past two congressional sessions. This milestone reflects the power of our collective voice in protecting consumers and strengthening the banking industry. 

Once signed into law, credit reporting agencies will be prohibited from providing a consumer’s credit report to third parties in connection with a residential mortgage transaction unless the request meets strict criteria. A consumer’s information may only be shared if:

The transaction involves a firm offer of credit or insurance and the third party either:

  • Certifies it has been obtained by the consumer’s consent, or
  • Has an existing relationship with the consumer as a mortgage originator, current loan servicer, or is a bank or credit union where the consumer holds an active account.
  1. The provision effectively ends the practice of unsolicited “trigger leads” and will take effect 180 days after the bill’s enactment.

A success like this underscores the power of WBA advocacy. Consumers will no longer be pestered with unwanted phone calls and text messages within hours of applying for a mortgage, and — most importantly — customers will no longer experience the confusion or frustration of believing their bank improperly shared their information with a third party.  

Thank you to all our members who submitted letters or spoke directly with lawmakers about the passage of this important bill and of the relevant ways it would benefit consumers. As always, we encourage you to join us on future advocacy trips to Washington, D.C. Your voice is critical — and your advocacy continues to make a powerful difference.

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Executive Letter: Fraudsters’ Impersonation of Wisconsin Banks on the Rise – Resources to Protect Your Community

From the Desk of Rose Oswald PoelsBy Rose Oswald Poels

I continue to hear from members across the state about attempts by bad actors to defraud customers through calls impersonating the bank. Many instances include “phone number spoofing” which makes the call appear to come from the bank itself. I encourage members to continue warning customers about fraudulent activity — reminding them to hang up if a call seems suspicious and to contact their bank directly using a verified number if they receive these calls.

Members should consider issuing a warning about bank impersonation — whether a website notice, a printed handout provided during branch transactions, or a message included in periodic statements. For banks with call centers and other voice messaging, information on fraud can be included as part of the recorded phone greeting. Members and their customers can also file a complaint about spoofing with the FCC.

The following resources are available to you and your team to create messaging to remind customers of various ways to protect themselves from scams:
• WBA-created consumer content which can be included in newsletters, take aways, or as electronic delivery regarding how customers can best protect against various scams.

• ABA’s BanksNeverAskThat Campaign which includes tips of how to avoid phishing in emails, calls, and text messages, videos of how to stop scam attempts, a game, a quiz, and downloadable resources.

ABA also has social media posts for banks to use. Registration is free for all banks regardless of ABA membership status. Once registered, the bank will receive a link to access the social medial campaign materials.

• ICBA’s Check Fraud Resources include guides for banks needing to respond to instances of check fraud claims and an information piece for customers to help them protect against check fraud.

I encourage members to remain proactive with communications that warn customers about bank spoofing. It is imperative that Wisconsin banks continue efforts to educate customers — especially our seniors and young adults — on how to spot scams, prevent check fraud, and to remember the types of questions banks will never ask. I will continue to share statistics and information with supervisory and enforcement agencies as we look for ways to combat against fraudulent activity and protect Wisconsinites from exploitation.

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Executive Letter: WBA Remains Engaged on Digital Currency Policy

From the Desk of Rose Oswald PoelsBy Rose Oswald Poels

President Trump’s signing of the GENIUS Act into law last Friday marks a significant development in the evolving conversation around digital currencies at the federal level. The new law, which passed broadly with bipartisan support in both the Senate and House, establishes a federal regulatory framework for payment stablecoins in the United States. Among other requirements, the GENIUS Act mandates that stablecoin issuers maintain reserves on a 1:1 basis with the value of outstanding stablecoins, using assets such as cash, government securities, or other highly liquid assets including deposits held at insured banks and credit unions. The law also requires stablecoin issuers to follow BSA and tailored AML rules.

As policymakers continue to outline and debate the market structure of and other issues related to digital assets with the CLARITY Act passing the House last week and moving to the Senate, the Wisconsin Bankers Association remains committed to making sure the voice of traditional banking is heard clearly. We remain closely engaged with these conversations in order to advocate for balanced policy that preserves the strength of traditional banking.

WBA staff is currently developing resources to help our members better understand the effects of the GENIUS Act — more specifically how stablecoin and digital assets fit into the world of traditional banking—and what it may signal for future regulation. Also in the works: both banker-related and consumer-facing information pieces regarding the Act, opportunities and considerations in the evolving market, and digital currency overall. These materials will be available in the weeks ahead, and we encourage you to watch for updates in the Wisconsin Banker Daily and our website.

Digital asset issues are not limited to Washington, D.C. WBA remains engaged at the state level as well to ensure the industry is represented during cryptocurrency discussions.

WBA will continue to keep members informed as the digital assets landscape evolves. Please do not hesitate to let me or others on the WBA team know what additional education or resources would be helpful as we navigate this emerging payment method.

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Executive Letter: Celebrate Financial Literacy at the Third Annual Wisconsin Bankers Foundation Gala

From the Desk of Rose Oswald PoelsBy Rose Oswald Poels

I am pleased to announce the Wisconsin Bankers Foundation Gala will be returning for its third year! The event will take place on Thursday, September 25th from 5:30-8:30 at the Goodman Community Center Brassworks Building in Madison. The event is open to the public, and I cordially invite you to be a part of this elegant and exciting evening.

The gala is hosted by the charitable arm of the Wisconsin Bankers Association. The event celebrates the impactful work of the Foundation and the many bankers across Wisconsin who work to promote financial literacy.

Those who attended last year’s gala know what a lively night it can be! We’re bringing back emcee Geoffrey Sandler with Celebrations Entertainment who will serve as the DJ, auctioneer, and high-energy party host. Attendees will enjoy a delicious array of heavy appetizers, desserts, and an open bar.

There will be silent and live auctions featuring a range of items and experiences — your winning bid will support the Foundation’s statewide grants, scholarships, and financial education programs. We’ll also take time to recognize the non-profit grant recipients and the important work they do every day.

This year’s venue — the historic Brassworks Building — offers a warm, elegant atmosphere. Attire can range from business to semi-formal. Come as you are, or dress up and make a night of it! Tickets are $150 per individual or $1000 for a group of eight — a great option for bringing colleagues, clients, and friends along.

The Wisconsin Bankers Foundation (WBF) has been committed to promoting financial literacy across our state through education, scholarships, and research since its founding in 2015. WBF’s ongoing efforts include the Reading Raises Interest kits distributed on Teach Children to Save Day, free access to Banconomics data reports, and grants to nonprofit organizations whose missions align with ours. The Foundation also supports students directly by awarding scholarships to young people pursuing agricultural banking programs in Wisconsin and to individuals who have demonstrated outstanding financial literacy achievement.

I invite you to take an active role in this important event by attending, sponsoring the gala, and/or donating items for auction. Your sponsorship payments to WBF as a 501(c)3 public charitable organization are tax-deductible to the extent allowed by the IRS rules. Please contact me, Nick Loppnow (nloppnow@wisbank.com) or Elizabeth Fenton (efenton@wisbank.com) to sponsor the event or donate auction items.

Please join us for an elegant evening of food, music, networking, and generosity. I look forward to seeing you at one of my favorite events of the year!

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Executive Letter: “Crypto Week” is Next Week in D.C.

From the Desk of Rose Oswald PoelsBy Rose Oswald Poels

WBA and its members have spent an increasing amount of time over the last few years discussing cryptocurrency and its impact on the banking industry and consumers with our congressional delegation during both in-district and Washington, D.C. meetings. Those conversations intensified this session with Rep. Bryan Steil (WI-01) becoming the Chair of the Digital Assets Subcommittee of the House of Financial Services. At a June 30 event for Rep. Steil, he discussed in detail his leadership of the STABLE Act bill, broader crypto industry regulation, and the likely path forward in the House. His forecast was confirmed late last week when the House Committee on Financial Services Chairman French Hill (AR-02), House Committee on Agriculture Chairman GT Thompson (PA-15), and House Leadership announced that the week of July 14 will be “Crypto Week.”

Next week, the U.S. House will consider the CLARITY Act, the Anti-CBDC Surveillance State Act, and the Senate’s GENIUS Act. Rep. Steil is quoted as saying the following in the House press release:

“The golden age of digital assets is here, and the U.S. will lead,” said Rep. Bryan Steil (WI-01). “Passing stablecoin and market structure legislation, alongside a CBDC ban, will ensure the U.S. wins the Web3 race. This package encourages the innovation and development of Web3 businesses here in the United States, protects consumers from fraud, and allows us to outcompete our adversaries, ensuring America dominates the future of blockchain technology.”

WBA’s advocacy focused on changes to stablecoin legislation that would protect the banking industry against disintermediation—for example, by requesting that stablecoin issuers be prohibited from holding Federal Reserve Master Accounts, barred from paying interest or other similar rewards on stablecoins, and requiried to comply with anti-money laundering rules. The GENIUS Act establishes a dual licensing system where nonbank issuers exceeding $10B in U.S. Dollars in outstanding issuance must obtain a specialized license from the OCC and will then be regulated by the OCC. Smaller nonbank issuers may opt for state or federal licensing. The Act also prohibits the payment of interest on stablecoins, requires issuers to comply with anti-money laundering rules, and clarifies that nothing in the Act expands or contracts current eligibility for master account access.

The CLARITY Act would establish regulatory jurisdiction over cryptocurrency at the federal level between the SEC and the CFTC. The CLARITY Act also establishes standards for reserve assets, operational risk, and supervisory oversight. At the same time, the OCC will be playing a role as more digital asset firms seek applications for a national trust bank charter. Currently, crypto platform Anchorage Digital is the only digital asset company with a national trust bank charter; however, both Circle and Ripple have also submitted applications.

WBA supports the Anti-CBDC Surveillance State Act, which would prohibit the Federal Reserve from issuing a CBDC directly to individuals.

All three bills are expected to pass the House next week. This action, assuming no amendments, will then send the GENIUS Act directly to the President’s desk as the bill already passed the Senate. The acceptance of stablecoins as a method of payment among U.S. citizens and the practical impact on the banking industry of stablecoins remain to be seen. WBA will continue to be a vocal advocate for the banking industry with legislators and the public reinforcing the critical role that the industry plays in the economy and the fundamental need for bank deposits to fill that role.

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