During the past several weeks, I have been reading with interest about NAFCU's position concerning private share deposit insurance.
After giving it some thought I have come to the conclusion that the organization of NAFCU is to the private insurance option is what the bankers are to credit unions. Both NAFCU and the bankers dangerously create deep shadows of doubt and self serving propaganda over the viability of their indirect and direct competitors.
During my career I have run a federal credit union and a privately insured state chartered credit union. I ran the former for almost 12 years and the latter, my current employer, for almost 20 years. In working alongside the board members of both charter structures they were, and currently are comfortable with their respective choices of share insurance.
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A credit union trade association the caliber of NAFCU has irresponsibly decided to attack an integral part of the credit union movement by casting doubt on private insurance and disparaging those credit unions and members who have voted to change for the private insurance option.
By attacking private insurance, NAFCU attacks private enterprise. While touting the virtues of a one federal government bureaucratic regulator, they state the old and tired slogan "backed by the full faith and credit of the United States Government." The words that need to follow the word government in the same slogan should be "via its hard working, tax paying citizens."
Keep in mind, the NCUA modeled the National Credit Union Share Insurance Fund after the corporate share insurance structure of the National Deposit Guaranty Corporation, now known as American Share Insurance.
I believe NAFCU is treading on dangerous ice in attacking private enterprise while their own member federal credit unions are serving the employees, families and employers earning their livelihoods from the same.
NAFCU is nothing more than a sideline trade association. While CUNA and her leagues have done the heavy lifting for the interest of all credit unions over the years, NAFCU has simply ridden on the coat tails of CUNA.
For those federal credit unions who are members of NAFCU, you should seriously question what you are gaining from your member dues. NAFCU's management and board of directors have joined the bankers in attacking and sniping at the legal choices of your neighboring privately insured credit unions and at the states who wish to make available the private insurance option. Someday you may wish to possess the same option.
Bruce A. Rodela
President/CEO
Frontier Financial Credit Union
Reno, Nevada
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