The Colorado league is expressing "disappointment" in a decision by the Division of Financial Services Commissioner David Paul that private share insurance will not be permitted for state charters.
"Colorado credit unions were disappointed in Commissioner David Paul's determination that there is currently not 'comparable' insurance available," said Jim Holt, president of the Colorado league. "However, we hope to continue positive discussions with the regulatory department in the spirit of cooperation."
Paul focused on the backing of the Dublin, Ohio-based American Share Insurance Fund, diversification and provisions for involuntary termination in his decision, which was based on the analysis of ASI as the only current potential alternative.
A temporary task force of both state-and federally chartered credit union CEOs had been working on the issue in Colorado, which noted Paul's recognition that he is "supportive of...competition in deposit insurance."