Saying that the agency has “failed in its commitment to be transparent’’ on its proposal to allow credit unions to prepay their assessments for the corporate credit union rescue, NAFCU on Thursday urged the agency to release all comments submitted.
“We see little benefit to keeping information confidential, especially since NCUA is seeking input on general areas of concern. We would further note such information is important given the voluntary nature of the program and its clear benefit to ‘free-riders,’” NAFCU President/CEO Fred Becker wrote NCUA Chairman Debbie Matz.
“In this regard, we strongly believe that credit unions will achieve substantial benefit in their decision making by gaining a better sense of the intentions of other credit unions as to their participation,” Becker added.
The public has until June 20 to submit comments. The agency has said it won’t release the comments because keeping them confidential will encourage a more frank discussion.
Under the proposed plan, credit unions could prepay between $10,000 and 36 basis points of insured shares toward their assessments to pay the costs of the rescue of corporate credit unions. Fazio said that based on comments that the agency receives during the comment period the maximum contribution allowed could be increased.
Credit unions wouldn't earn any interest and the total collected in prepayments would have to be at least $300 million for the program to take effect.