A key Senate subcommittee chairman criticized a provision of NCUA's corporate credit rule encouraging corporate credit unions to levy a fee to members that are not federally insured in order to pay for the rescue of the corporate credit union system.
The rule "exceeds NCUA's rule making authority under the Federal Credit Union Act" and assessments are limited to federally insured credit unions, Sen. Sherrod Brown (D-Ohio) wrote in a comment letter to the NCUA.
Brown, who chairs the Senate Banking Committee's Subcommittee on Financial Institutions, wrote that the agency is trying to influence non-federally chartered credit unions by "exerting direct authority over corporate credit unions. This violates the spirit, if not the letter, of the law."
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