WASHINGTON – Characterizing the response to the corporate credit union rescue plan as having been filled with “energy and emotion,” NCUA Chairman Michael E. Fryzel promised today that his agency would redouble its efforts to find a more palatable solution.
“There are no easy choices” he said in a speech at CUNA’s Governmental Affairs Conference.
Fryzel said they are considering a range of alternatives submitted by CUNA and NAFCU and in an interview after his speech said they are “concerned” about the impact of the premium increase to replenish the National Credit Union Share Insurance Fund on natural person credit unions.
But he said that when the agency acted to rescue corporates they had to take a large-scale action “because the problems are systemic and require a systemic approach.”
The purpose of any changes to the credit union system will be to preserve it because “credit unions exist because we know that markets fail” and they provide opportunities to people who are overlooked by other financial institutions.