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We Don't Need New Ways to Increase Insurance Fund Risk

Stuart Perlitsh said we build capital thru earnings (Feb. 24 Letter), while Tom Dorety thinks we need to build capital through some new alternative capital (March 10 Letter).

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Stuart Perlitsh said we build capital thru earnings (Feb. 24 Letter), while Tom Dorety thinks we need to build capital through some new alternative capital (March 10 Letter). Dorety said that Chairman Matz agrees with him and that we should not worry about how the NCUA is going to allow this to happen because only those credit unions that are healthy will be allowed to accept alternative capital.

I agree with Perlitsh that we don’t need new ways to increase the risk to the insurance fund that would require healthy CUs to continue to bail out unhealthy ones.

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Peter Westerman

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