Dear Editor:
The recent Credit Union Times article “Attorney to Congress: Let NCUA Provide Cooperativa Safety Net,” relays the ideas of Mr. Jose Sosa-Llorens, a single private attorney representing a handful of Puerto Rico’s cooperativas. Mr. Sosa-Llorens advocates for Congress to grant the NCUA the authority to insure the deposits of cooperativas within the Commonwealth of Puerto Rico. However, such actions could expose the NCUSIF to unacceptable financial risk and create a serious reputational risk for the nation’s federally insured credit unions.
To be clear, cooperativas are institutions that have not been contributing to the NCUSIF, and have not been required to abide by the same set of stringent regulations established for the NCUSIF and the safety and soundness of the federally insured credit union system. They operate under a separate legal and regulatory scheme than federal credit unions with branches located in Puerto Rico.
NAFCU has been closely monitoring the Puerto Rico financial situation for any sign that the oversight plan, or any related plan, could have an impact on the NCUSIF or the NCUA’s budget – both of which are funded by federally insured credit unions. We are also watching for any impact this situation may have on NCUA operations, particularly its allocation of supervisory resources.
While this complex situation unfolds, NAFCU and our members urge Congress to avoid pursuing any actions that could put the NCUSIF at risk.
Carrie Hunt
Executive Vice President of Government Affairs and General Counsel
NAFCU
Arlington, Va.
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