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.