Because conversions to private insurance and mutual savings banks are "relatively rare," the NCUA isn't developing a contingency plan for helping credit unions that stay in the system deal with any additional costs from more departures, according to a letter from NCUA General Counsel Michael McKenna to NASCUS President/CEO Mary Martha Fortney.
He wrote that all five credit unions with conversion applications (three to mutual savings banks and two to private insurance) will pay this year's assessment to the Temporary Corporate Credit Union Stabilization Fund, and some will have to pay next year's assessment. The fund was set up by Congress in 2009 to pay for the rescue of several troubled corporate credit unions.
He added that while the agency doesn't need a contingency plan, it is "closely monitoring the situation and can take quick action, if necessary."
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