Monday, June 27, 2011

Question Of Fairness...

Several credit unions are reviewing or have announced intentions to convert to bank charters.  Those CUs which leave the NCUSIF are apparently not currently required to pay their share of the "$15 billion bill" for the Corporates.

The more CUs who choose to leave, the higher "the bill" for those who remain!  At some point, this opportunity to "get out of jail free" may become a dangerous game of "musical chairs" with Boards and CEOs who "do the honorable thing" being bankrupted by their amoral peers.

Does NCUA have the authority to require an NCUSIF "exit fee" on departing CUs? 

If so,  the exit fee should be announced to help CUs plan, who are contemplating a conversion. If not, when will NCUA propose regulation or legislation to correct this issue of injustice and fairness? 

If NCUA is truly intent on helping CUs manage "risks",  they should have no higher priority. 

If NCUA can't "manage" this very, real threat; be prepared for a new look on Duke Street in the near future...

No Exit Strategy..?!?
                            ... last one out is a rotten egg!

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