Retired Western Corporate Federal Credit Union CEO and U.S. Central board member Richard Johnson said he agrees with Callahan & Associates President Chip Filson's calls for members and directors of the failed corporates to challenge the NCUA's actions.
"I think the cure the NCUA is offering is worse than the sickness," Johnson said. "This business of taking away PIC and other capital is devastating to credit unions throughout the land."
Furthermore, Johnson said he doubts the NCUA has enough staff to handle all the credit unions that will require prompt corrective action as a result.
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The industry veteran said the situation reminds him of the 1995 Capitol Corporate Credit Union takeover, "when the NCUA would go into their closet and decide what they were going to do without talking to anyone about it."
"There's no doubt the people at the NCUA are very devoted, work hard and are doing what they think is right," Johnson said. "But the fact that they aren't talking to people, that they have all this secret information and think they know so much better than us, it's not right. They don't have a corner on all the wisdom."
Johnson added that finding a way to allow credit unions to write off NCUSIF losses over eight to 10 years should be a top priority.
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