One of the core principles in the U.S. Constitution is the notion that government should not take a citizen's property without just compensation. Our country upholds the rights of people to own property without unnecessary government intrusion. If government were to unlawfully seize one's property, it would be an offense to this basic democratic philosophy. This is precisely what I think could happen if the NCUA proceeds with its public position that credit unions' rights to recoveries from written-off corporate investments will be extinguished.

Corporate credit unions are member-owned cooperatives. As such, the members have an inherent property interest in the net assets of the corporates. Investments held by corporates ultimately belong to the members of the corporate.

Some investments held by U.S. Central, and many other corporate credit unions, saw massive unrealized losses. In some instances, these unrealized losses exceeded capital. As a result, the capital that corporate credit unions held in U.S. Central, and the capital natural person credit unions invested in WesCorp, were declared impaired. When the extent of impairment became other than temporary, the losses were recognized on credit unions' financial statements.