SAN DIEGO–At its ICBA LIVE event here, the Independent Community Bankers of America (ICBA) has unveiled a campaign called “The Illusionists” that it said is a targeted advocacy and marketing campaign to “pull back the curtain on growth‑obsessed large credit unions and the illusion used to justify practices that undermine local communities.”
A video that is part of the campaign alleges credit unions have been “hoarding wealth while families and taxpayers pay the price.”
America’s Credit Unions has responded by calling it a “haphazard misinformation campaign.”
“The Illusionists” includes a dedicated website on which the one-minute video is included and which takes the form of a movie trailer. According to the ICBA, the message is that “while large credit unions present themselves as community champions, they quietly make accountability, tax fairness, and consumer choice disappear.”
The site also includes FAQs and what the bankers’ group said is additional information on “credit union acquisitions of tax-paying community banks, how community banks outperform credit unions in meeting the needs of the local communities that credit unions receive a tax exemption to serve, and the tax and regulatory disparities that demand policy reform.”
A ‘Get the Facts’ Form Available
The site allows community bankers to submit a “Get the Facts” form to receive an “Illusionists” playbook that it says, “offers community bankers a framework for elevating the issue at the local level.”
According to the ICBA, the playbook features tools such as:
- Clear, ready‑to‑use messaging.
- Sample social media posts.
- A customizable letter to the editor template.
- Guidance for local outreach and advocacy
Video: ‘Shadow Figures’ & ‘Hidden Corridors’
In the one-minute video in the form of a movie trailer that includes a variety of imagery, including clips of an illusionist performing, card tricks, a darkened vault and more, the narrator says, “In every town and city nationwide there is something familiar we’ve never really questioned; a name we’ve heard; a place we’ve trusted; a story we thought we knew.
“But some stories aren’t what they seem. Some reflections are curated, not earned. Watch closely. The surface looks inviting, steady, purpose driven, safe. But tilt the mirror and the image bends. Opportunity fades, choices narrow, capital vanishes, leaving no trace behind,” the narration continues. “These shadow figures move through hidden corridors, dodging oversight and hoarding wealth while families and taxpayers pay the price. This isn’t an accident; it’s design, a perfect illusion.
“But every illusion eventually cracks. It’s time to take a closer look at what’s been hiding in plain view, the truth behind the mirror, the cost behind the act,” the narration concludes. “Find out how big credit unions have been pulling your strings. The illusionists. Reveal the truth.”
America’s Credit Unions: ‘Misleading Narratives’
“The Independent Community Bankers of America has launched another haphazard misinformation campaign attacking credit unions, but the facts remain unchanged: credit unions are member-owned, not-for-profit financial cooperatives that exist to serve their communities and expand access to affordable financial services,” said America’s Credit Unions President and CEO Scott Simpson in a statement. “If the goal is to spotlight deceptions, it may be worth starting with the illusion that credit unions operate like Wall Street banks. They do not. More than 145 million Americans choose credit unions because they put people ahead of profits and reinvest earnings back into better rates, lower fees, and financial education for their members. And they choose credit unions not because of illusions, but because of the miracles they make happen every day for their members.
“Whether that’s helping a small business owner realize their dreams or a young family with their first home purchase, credit unions stand firmly by their members’ side day-in-and-day-out.
“While some groups continue to push misleading narratives about the cooperative finance model, we remain focused on the real issue of ensuring families, small businesses, and underserved communities have access to safe, affordable financial services,” Simpson continued. “Credit unions and community banks both play important roles in the financial ecosystem. America’s Credit Unions will continue advocating for policies that strengthen community-based financial institutions and the consumers they serve.”
DCUC: ‘Three Contradictions’
“The latest campaign from the Independent Community Bankers of America is less about facts and more about desperation,” said Jason Stverak, chief advocacy officer with the Defense CU Council, in a statement. “Let’s be honest about what this really is: a well-funded attempt by the banking lobby to distract policymakers from its own preferential tax treatment while attacking the cooperative financial institutions that millions of Americans trust. ICBA’s campaign is built on a series of tired talking points and outright contradictions.
“First, community banks complaining about tax policy is a bit rich when thousands of them operate under Subchapter S status, allowing owners to avoid corporate taxes entirely and pass income directly through to shareholders,” Stverak continued. “That structure was created precisely to reduce tax exposure for banks. Yet the same institutions benefiting from that tax advantage now claim the moral high ground when it comes to credit unions’ tax status. That’s not principled policy advocacy—it’s hypocrisy.
“Second, ICBA continues to repeat the myth that credit unions are “tax-subsidized competitors. Credit unions are not-for-profit financial cooperatives owned by their members, not outside investors. The tax status Congress granted credit unions recognizes that fundamental difference. Every dollar earned by a credit union is returned to members through lower loan rates, higher savings yields, and fewer fees—not distributed to shareholders or Wall Street investors.
“Third, ICBA’s campaign deliberately ignores the reason credit unions exist in the first place: to serve people banks historically overlooked” Stverak stated. “Military families, rural communities, and working Americans depend on credit unions precisely because their cooperative model prioritizes people over quarterly earnings. ICBA’s argument boils down to this: if a not-for-profit cooperative succeeds in serving its members well, it should be punished for it.
Concern ‘Rings Hollow’
“Finally, the banking lobby’s sudden concern about competition rings hollow. Banks dominate the financial services marketplace with trillions in assets, access to capital markets, and—again—tax structures like Subchapter S designed to minimize tax liability,” Stverak said. “Meanwhile, credit unions remain mission-driven cooperatives whose earnings go back to members, not shareholders.
“So when ICBA talks about ‘deceptions,’ policymakers should ask a simple question: who benefits from rewriting the rules? Because this campaign isn’t about fairness. It’s about eliminating competition from institutions that put consumers first.
“Credit unions will continue to stand up for their members—especially servicemembers, veterans, and their families—and we won’t be intimidated by yet another bank-lobby messaging campaign,” Stverak concluded.
