In a Feb. 8 letter NCUA left no uncertainty about its intent to attempt to show the way through the turbulent times now enveloping corporate credit unions.
In the letter, titled "Corporate Credit Union Guidance Letter" and signed by Office of Corporate Credit Unions Director Scott A. Hunt, NCUA warns about the risks of too much consolidation, which might, Hunt wrote, "create an unacceptable 'too big too fail' scenario." NCUA explicitly applies this warning both to a potentially very large corporate and also to a possible CUSO, supported by multiple credit unions, that had grown large in pursuit of economies of scale.
NCUA said that if such very large institutions were to fail, the consequences would include interruption of service.
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