The National Federation of Community Development Unions has waded into the controversy over how the NCUA should handle the losses at corporate credit unions and has come down firmly in the camp of taking government help.Meeting in Washington during CUNA’s Governmental Affairs Conference, the National Federation Board passed a resolution in favor of making funds from the Troubled Asset Relief Program available to struggling credit unions.“We are concerned about the consequences of reduced net worth and return on assets that would necessarily result from the measures that the National Credit Union Administration has proposed,” said National Federation CEO Cliff Rosenthal.In addition, the board also passed resolutions in favor of giving corporate credit unions direct access to the Central Liquidity Facility and spreading share insurance premiums out for as long as eight years.“These actions will help all credit unions,” Rosenthal said. “However, it is important to recognize that small and low-income credit unions are especially vulnerable during this crisis. In 2008, the pace of liquidations and mergers of low-income credit unions doubled, and far exceeded that of the rest of the credit union industry. If this trend continues, the capacity our credit unions have painstakingly built up over the last 30 years will be dismantled, leaving many low-income communities with little or no access to affordable financial services.”–[email protected]

Complete your profile to continue reading and get FREE access to, part of your ALM digital membership.

Your access to unlimited content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including and

Already have an account?


© 2023 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.


Credit Union Times

Join Credit Union Times

Don’t miss crucial strategic and tactical information necessary to run your institution and better serve your members. Join Credit Union Times now!

  • Free unlimited access to Credit Union Times' trusted and independent team of experts for extensive industry news, conference coverage, people features, statistical analysis, and regulation and technology updates.
  • Exclusive discounts on ALM and Credit Union Times events.
  • Access to other award-winning ALM websites including and

Already have an account? Sign In Now
Join Credit Union Times

Copyright © 2023 ALM Global, LLC. All Rights Reserved.