NCUA senior source says agency will not oppose further insurance conversions

ORLANDO, Fla. – A senior NCUA source has predicted that credit unions that wish to convert from federal to so-called private insurance will be expected to comply completely with the existing rules and regulations but said that the agency will not oppose such conversions publicly. The agency will be scrupulous about making sure that the procedures leading up to conversion votes, particularly the procedures governing full and complete disclosures to credit union members about the issues such a conversion represents, will be followed. The source said the agency is very concerned with making sure credit unions members know what they are voting for if they vote to leave federal insurance. “But after all the procedures are followed we really don’t have jurisdiction,” the source added. The source denied that NCUA Board Member Deborah Matz had been sent out to confront the issue and predicted that the agency will not publicly criticize or oppose credit unions that might want to change their insurance protection. The public at large does not make the distinction between government and private insurance, the source noted. Publicly attacking private insurance only makes everyone look bad, the source said.