The long-running industry debate over federal versus private insurance for credit unions was fired up again this week thanks to the financial mishaps at Silver State Credit Union in Nevada with both NCUA and American Share Insurance parties trading barbs about "scare" tactics.

The latest pronouncements came amid two developments: ASI's decision to impose an unprecedented 15 basis point premium to take care of expected losses from unidentified problem CUs and comments made to a Las Vegas newspaper Tuesday by the Silver State CEO, David Rhamy that NCUA Chairman Debbie Matz was unduly engaging in "scare" maneuvers to get rid of private insurance.

Specifically, Rhamy charged that Matz in remarks at a CUES conference earlier this month was trying to scare people that ASI-insured CUs were at risk and that the Ohio-based ASI lacks ability to pay depositors if a large CU fails, a claim vigorously denied by ASI.