Editor's Note: This letter is in response to "Senate Leader Plans Vote On MBLs Bill" from the CU Journal Daily Briefing, March 15.
What a potential bomb that could be... who is even discussing this openly? CUNA had a few trying to go forward and the rest get taken along for the ride. I think one debacle is enough for this gang of thieves!!!!
This is looking a whole lot like the "expanded investment options" that WesCorp took on when a few CUs put the funds up to meet the capital requirements. We all know how that turned out!! A few CUs see the need and the entire industry will pay for the folly. Based upon the outcomes at some notable MBL lenders (Telesis and ECCU), I can't see the need for even more of this stuff. The vast majority of CUs either don't offer MBLs or are nowhere near their limits. Also, given the ineptness of NCUA in monitoring, controlling, overseeing, reacting, etc. to the current book of business, who needs more assessments? If those CUs can't obtain a waiver or find a charter, then I'm not wanting to be on the hook for their follies. And, without much national discussion as to merits and exposures, do you really want Harry Reid negotiating with our tax status? Gee, no vested interest here!!!!
Gregg Stockdale, CEO
1st Valley CU, San Bernardino, Calif.