Looking back five years ago finds Patelco Credit Union moving full steam ahead with what would be the largest conversion to a private insurer.
The conversion caught the attention of the credit union community not only because it is the largest credit union ever to apply for private insurance at $2.8 billion in assets, but because it will represent 22% of the American Share Insurance fund and take a noticeable chunk, some $12 million out of the NCUSIF.
According to then Patelco CEO Ed Callahan, a historically strong advocate of federal insurance, this isn't a statement about the NCUSIF, but more a move to cover its members' $480 million of uninsured funds.
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"The economic splurge we're going through right now has brought it to the floor," Callahan said. "My only fear is that it looks like a statement is being made. We've been happy and secure and delighted with federal insurance, but believe the competitive edge provided by greater coverage from ASI is worth leaving the NCUSIF."
Also in that issue a proposal by the Federal Deposit Insurance Corp. would allow federally insured, state banks to register as Limited Liability Companies and open up new avenues of tax avoidance for the for-profit institutions.
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