MIDDLETOWN, Penn.-Jay Murray, CEO of Mid-Atlantic Corporate FCU, Middletown, Penn., believes that Mid-Atlantic's sound performance throughout the corporate crisis has elicited support from members, with many still leaning on Mid-Atlantic for investments and investment guidance.

"I don't know that the credit union world is getting riskier, because the belief is the regs control risk. However, if credit unions decide not to go with corporates for most of their investing, now they have to handle a new administrative task-the complete oversight and management of their investment portfolio," said Murray.

"That could burden some credit unions that previously did not have to worry about these matters and relied on the corporates. Things could get out of control, just like when someone does not carefully watch their own finances."

The Biggest Danger

Victor Vrigian, Jr., VP of marketing for Alloya Corporate FCU, Warrenville, Ill., believes the new regulations that limit corporate investments, require higher capital requirements, and increase awareness of risk beyond normal or historical levels have made the industry safer. "However, the risk has been shifted from corporates to natural-person credit unions because that's where the bulk of the capital in the credit union system resides. The biggest danger is that natural-person credit unions must now manage investment risk to levels that they might not have been used to in the past."

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