NAFCU Challenges Treasury Blueprint

WASHINGTON--(Business Wire)--
National Association of Federal Credit Unions (www.nafcu.org)
President Fred Becker said that the "blueprint" announced today by
Treasury Secretary Paulson to significantly change the regulatory
structure of financial institutions "fails to take into account the
unique role of credit unions and the benefits they provide to the
American consumer."

The Treasury blueprint calls for consolidation of the national
bank, national savings association and federal credit union charter
into a single "federal insured depository institution" charter. While
not specifically stated, it appears that Treasury is also seeking to
create a single federal deposit insurance fund to replace FDIC
coverage and the National Credit Union Share Insurance Fund.

"Credit unions play a distinct and unique role in the economic
marketplace," Becker said. "In fact," he added, "NAFCU was established
to create an independent regulator for federal credit unions and a
federal insurance fund that we believe provide the necessary
safeguards for a healthy credit union system."

"The value of the current, separate federal regulatory and share
insurance structure for credit unions is undeniable. Unlike other
federal depository insurance funds, the National Credit Union Share
Insurance Fund has never cost U.S. taxpayers a penny. It has been
quite effective in enhancing the safety and soundness of these
non-profit, volunteer-led financial cooperatives, and we remain
committed to preserving that," Becker said.

Becker predicted that Treasury's latest blueprint for reform would
not go far in the waning days of the Bush administration or the final
session of this Congress. "We believe it is more likely that some of
the legislative matters already before us, including mortgage reform,
will move forward this year and we look forward to getting those bills
enacted." Even Secretary Paulson stated that major changes are
unlikely in the near future. "These long-term ideas require thoughtful
discussion and will not be resolved this month or even this year," he
said.

NAFCU is the only national organization that focuses exclusively
on federal issues affecting credit unions, representing its members
before the federal government and the public. For more information,
visit www.nafcu.org.

National Association of Federal Credit Unions
Patty Briotta, 703-522-4775, ext. 291
pbriotta@nafcu.org

Copyright Business Wire 2008