When Jim Riederer, CEO of CME Federal Credit Union in Columbus, Ohio, read the draft NCUA regulations pertaining to equitable distribution of corporate credit union stabilization expenses (section 702.41 in a document dated Nov. 18), he could feel his anger rising. "It is unfair and it is arbitrary," he said. But he did not stop with expressing his annoyance.
On Jan. 5 he circulated a letter to some 70 Ohio credit unions strenuously opposing the proposed regulation. "I already have six signatures, just in the first 24 hours," Riederer said. "Nobody has told me they won't sign."
He said his primary sticking point with the NCUA language is that it allows corporate credit unions to oust non-federally insured credit unions that decline to participate in "voluntary" recapitalization, "and that just is wrong."
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