Problem Is With Market, Not CUs
Editor's note: the following letter to the editor was written in response to the story titled "CU Aversion To Government Bailout Dissipates" related to the corporate stabilization plan (CU Journal, March 13).
If this were a credit union problem, I might agree that we should handle it ourselves, however it is not.
It is a problem with the loss of a market for CMO and CDO securities that stems from the loss of investment banks to make that market. The TARP funds are set aside to take care of problems due to the loss in value of these securities.
Yes, [US Central Corporate FCU] should have known better, and NCUA should go back to school to learn about concentration risk, but even with that considered, its still a market disintegration problem, not a credit union problem.
Therefore, taking the money to fix it from our members when there are funds set aside for this specific issue is not in the interest of credit unions. It's just easier than doing what's right.
Bill Wade, CEO
Corpus Christi, Texas
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