While CUNA does not welcome this plan by NCUA forcing credit unions to pay such a high price, we do understand the need for the agency to act. However, we also believe the agency must consider other solutions to mitigate the costs on credit unions during these difficult economic times.

Based on what we know from both NCUA and the corporate network, the agency was compelled to act promptly to address growing demands on corporate liquidity and capital. The agency felt that its choices in acting were limited, but that assessing a premium and a partial write-off of credit unions’ 1 percent NCUSIF deposit would be the least costly, in the long run, to credit unions.

However, CUNA has real concerns about whether the agency adequately explored the complete range of choices available. We are fully aware of and troubled by the pressures that the agency’s decision will have on credit unions. Our view is that other choices can and must be explored, immediately, to mitigate the impact on credit unions.

The CUNA Corporate Task Force met all day Thursday (Jan. 29) and discussed with NCUA, natural person credit union and corporate experts concerns about NCUA’s actions. The group also began the process of identifying alternatives to recommend to NCUA. Over the next few weeks, we will continue a dialog with the agency and urge it to consider other approaches to this challenge.