WASHINGTON – Acknowledging the strong division in the credit union movement about whether to take federal money aimed at helping troubled financial institutions, CUNA President/CEO Dan Mica said today they are pushing forward on having the option of getting the money because "the door is closing."
During a meeting on the NCUA's corporate credit union rescue plan he told a capacity crowd at CUNA's Governmental Affairs Conference that "we need the option, we need the backup" that Troubled Asset Relief Program money would provide.
Mica said they are working to come up with a range of alternatives for dealing with the difficulties faced by corporate credit unions.
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"I'm not sure we have the right solution yet, but we're working on it," Mica conceded.
He said the NCUA needed to do something to deal with the corporate situation or it would have cascaded down to the rest of the credit union system and if the agency had taken no action it could have cost the system $18 billion, rather than the current estimate of $3.7 billion.
But Mica said the NCUA's solution to levy a premium to replenish the National Credit Union Share Insurance Fund will be a burden to many credit unions. That's why they are working through a range of options that they are presenting to NCUA.
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