Fryzel to Credit Unions: “Be Optimistic About Our Shared Future” 

May 4, 2009, Alexandria, Va. –NCUA Chairman Michael E. Fryzel outlined a broad set of priorities related to the continuing Agency efforts to resolve the difficulties facing the corporate credit union system during remarks to nearly 150 credit union officials at the Illinois Credit Union System’s Governmental Affairs and Legislative Day in Springfield, IL.

“The immediate priority is Congressional approval of the NCUA Corporate Stabilization Plan (passed by the Senate this week).  That proposal is essential to the ability of NCUA to maintain a strong insurance fund, while at the same time allowing for the normal operations of the corporate network.  But we also have to look to the future: I encourage continuing dialogue between credit unions and NCUA on possible reforms to the corporate system.  This is a juncture in our history where we can turn the challenges presented by the market turmoil into an opportunity to revamp, refine and improve the form and functions of corporate credit unions.  The ultimate goal will be to create a better system, one that is positioned to meet the needs of credit unions and the consumers they serve,” stated Chairman Fryzel.

“Looking ahead, I encourage credit unions to be optimistic about our shared future.  I have repeatedly expressed my intention to take whatever steps necessary to preserve the safety and soundness of the credit union industry, and NCUA’s recent actions have instilled confidence in a corporate network that has experienced considerable stress.  Credit unions should be reassured by this and should know that, working cooperatively; credit unions can not only deal with problems, but also emerge a stronger and more valuable asset to America’s consumers.”

The National Credit Union Administration charters and supervises federal credit unions. NCUA, with the backing of the full faith and credit of the U.S. government, also operates and manages the National Credit Union Share Insurance Fund (NCUSIF), insuring the deposits of nearly 90 million account holders in all federal credit unions and the majority of state-chartered credit unions. NCUA is funded by credit unions, not federal tax dollars.

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