Mandating that credit unions pay into a fund aimed at rescuing large financial institutions isn't equitable and would hurt credit union members, NCUA Chairman Debbie Matz wrote in a letter to House Financial Services Committee Chairman Barney Frank.
"As relatively small institutions whose assets are miniscule compared to large, interrelated companies, credit unions are highly unlikely ever to be the subject of such a resolution. Any credit union failure would be managed internally by NCUA through the National Credit Union Share Insurance Fund and, therefore, would pose no risk to the FDIC-run resolution fund," Matz wrote.
She added that it isn't fair for not-for-profit cooperatives to pay for losses caused by for profit companies.
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