Washington (10/12/10)--Credit Union National Association (CUNA) President/CEO Bill Cheney appeared live Monday morning on CNBC's Squawk Box
to talk about credit unions and again dispel any mistaken notion that recent regulatory action involving corporate credit unions constitutes any form of bailout. Co-anchor Joe Kernen in an introduction asked Cheney about the characterization of the National Credit Union Administration’s (NCUA’s) actions to stabilize the corporate credit union system as a “government bailout.” “That’s not quite right, is it,” Kernen asked.
Cheney emphasized that "this is not a bailout in any way, shape or form" and that NCUA's action "won't cost the taxpayers a dime." Asked about a "worst case" scenario regarding the government guarantee behind the credit union investments to bolster the corporate system--and whether that eventually could lead to taxpayer costs, Cheney underscored that credit unions are fully able to pay for the costs of the stabilization program over the allowable 11 years. Cheney said, “The government has set up a program that will enable credit unions to pay for this themselves. They aren’t asking for any bailout.” Cheney further explained the difference between corporates and natural person credit unions and stressed that "the credit unions consumers deal with will continue to do a great job, as they always have, serving their members."