SALT LAKE CITY, Utah-Count Kris Mecham among those who support the concept of a plan to help corporates, but who also questions NCUA's current proposal.
"We are a movement, and we are all part of this," offered Mecham, who is CEO of Deseret First FCU and chairman of CUNA's Governmental Affairs Committee. "But I think NCUA could have been more of an aid to the industry in how they set this up. I think we need to correct it. I am not sure that the systems they set up, the manner, and timeline are the best for the movement."
Mecham suggested there are other options. "If a billion dollars is to go into a capitalization account for U.S. Central, did it have to come out of the Share Insurance Fund and did credit unions have to pay the full fare this year? Is there an option that credit unions themselves could make deposits on a pro-rata basis that U.S. Central could use toward that capitalization? Then, if they are successful in their plan and we don't need the full billion, we get our money back? If they need it, we expense it. That might buy us some time, rather than expensing it this year."
Mecham said CUNA's Corporate CU Task Force is now focusing efforts on assessing the NCUA plan, and NCUA's announcement didn't change the task force's agenda, it provided focus. "Now that there is a solution on the table, our focus is on whether this is the best way (to bail out the corporates), or can NCUA accomplish their goals through other avenues? I think we are now more focused on a real solution rather than a philosophical one," Mecham suggested.
Terry West, CEO of Vystar CU in Jacksonville, Fla., is chairman of the Corporate CU Task Force. Other members include: Dave Rhamy, CEO of Silver State Schools CU, Las Vegas, Nev.; Frank Michael, CEO of Allied CU, Stockton, Calif.; Jane Watkins, CEO of Virginia CU Inc., Richmond; Dale Dalbey, CEO of Mutual Savings CU, Hoover, Ala.; Bob Allen, CEO of Teachers FCU, Farmingville, N.Y.; and Tom Gaines, CEO of the Tennessee Credit Union League, Chattanooga, Tenn.
