Sen. Brown Criticizes Proposed Rule for Voluntary Assessments on Privately Insured CUs
A key Senate subcommittee chairman criticized a provision of NCUA's corporate credit rule encouraging corporate credit unions to levy a fee to members that are not federally insured in order to pay for the rescue of the corporate credit union system.
The rule "exceeds NCUA's rule making authority under the Federal Credit Union Act" and assessments are limited to federally insured credit unions, Sen. Sherrod Brown (D-Ohio) wrote in a comment letter to the NCUA.
Brown, who chairs the Senate Banking Committee's Subcommittee on Financial Institutions, wrote that the agency is trying to influence non-federally chartered credit unions by "exerting direct authority over corporate credit unions. This violates the spirit, if not the letter, of the law."
The comment period for the proposed rule containing that provision ended in January but Brown included his comments in a letter about the NCUA's proposed rule for federal corporate credit union chartering that the NCUA Board voted to send out for comment last week.
American Share Insurance, which provides insurance to state-chartered credit unions in nine states, is headquartered in Dublin, Ohio.