Stuart Perlitsh said we build capital thru earnings (Feb. 24 Letter), while Tom Dorety thinks we need to build capital through some new alternative capital (March 10 Letter). Dorety said that Chairman Matz agrees with him and that we should not worry about how the NCUA is going to allow this to happen because only those credit unions that are healthy will be allowed to accept alternative capital.
I agree with Perlitsh that we don't need new ways to increase the risk to the insurance fund that would require healthy CUs to continue to bail out unhealthy ones.
I will not presume to suggest ways to Dorety on how to operate his credit union, but perhaps he should return the same courtesy to other credit unions that do not wish to seek alternative capital.
I would ask Dorety, what are the unintended consequences to the alternative capital? What other issues will be forced on those that continue to build capital thru earnings? Perhaps before the credit union industry pushes this, those like yourself should back up and get more information. Maybe you should consider more facts rather than have the attitude that my mind is made up, don't confuse me with the facts.
David A. Roman
CEO
Cosden FCU
Big Spring, Texas
