FT. LAUDERDALE, Fla. — Responding to NAFCU's letter to Washington's Department of Financial Institutions recently that private primary deposit insurance "threatens" the dual chartering system, NASCUS stated that the state regulators can handle oversight of their credit unions.

"State regulators rigorously examine and supervise state-chartered credit unions," NASCUS President/CEO Mary Martha Fortney stated. "All of the nation's state credit unions are thoroughly examined and held to the highest standards of safety and soundness by their state regulator. To suggest otherwise not only does a disservice to state regulatory agencies, but to the entire state credit union system."

In his Aug. 7 letter, Becker wrote, "The dual chartering system, which NAFCU fully supports, is a major strength of the financial services industry and essential to assuring the maximum security of Americans' shares and deposits. Currently, state-chartered credit unions whose shares are insured by the NCUSIF are subject to rigorous safety and soundness regulations promulgated and administered by the NCUA, but still enjoy charter options available to them under state regimes. This flexibility is evidenced by the 5,159 federal and 3,146 state chartered credit unions that are presently federally insured. NAFCU opposes significant alterations to the current dual chartering and supervisory system. An option to maintain primary share insurance with a private insurer is a significant alteration and one that threatens this system."