To burden credit unions with the cost of funding NCUA's Stabilization Plan during a recession merits comment.
The gnawing question is why should those credit unions who have managed well take a hit because large corporates unwisely went overboard in investing in risky mortgage- based on securities? Nor is the NCUA blameless. As far back as 2003, mortgage-based securities made up 30% or more of some corporate portfolios. In its oversight responsibility, the NCUA should have raised a risk flag at that time. It did not. Where is the mea culpa?
It is not a time for credit unions to accommodate assessments. That does not bode well for credit unions members who must foot the bill for an assessment that is almost predatory.
Art Lombardi
Clarksville, Tenn.
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