NCUA, CU Trade Groups Respond ToBankers’ Accusations

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ALEXANDRIA, Va. - (12/19/05) NCUA and the credit union trade groupshave moved quickly to respond to charges by two bankingorganizations that a “staffing crisis” at NCUA isputting credit unions-and the deposit insurance fund--at risk. NCUAChairman JoAnn Johnson asserted there is no cause for concern.“The NCUA is strongly positioned from a staffing standpointto address normal and any anticipated contingencies," she said in astatement. “Most recently, the agency reallocated resourcesafter Hurricane Katrina and Rita without adversely impactingoperational programs. The wise use of agency resources remains ahigh priority." NAFCU’s Carrie Hunt dismissed the letter as“just another attack from the banks.” CUNA CEO Dan Micaagreed, adding, “Credit unions have nothing to apologize forwhen it comes to safety and soundness…Furthermore, it'sastounding to hear any banker trades, especially ones that includethe remnants of the thrift industry, express any opinionswhatsoever about the adequacy of credit union regulation, giventheir record of failure in this area. Moreover, the bankingindustry’s significant and costly violations of the BankSecrecy Act show they still haven't put their own house inorder.”

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