Callahan’s Chip Filson Wants Credit Unions to Have FDIC Option

In an April 18, 2011 article posted on his web site, Chip Filson, President, Callahan & Associates proposes separating NCUA from the NCUSIF and allowing credit unions to convert to FDIC insurance of accounts. He joins many state chartered credit unions and NASCUS which have raised the issue of separating NCUA from NCUSIF because NCUA hits the NCUSIF for a disproportionate share of the fund revenues for its (growing) budget.

Filson joins many credit union executives who are starting to lobby Congress independent of the trade associations. A credit union group from NC spent $600,000 last year – $1 million the year before. Boeing is leading a group which paid over $200,000 to the Gates law firm to lobby presumably for alternative capital. Other groups are making noise - asking Congress for more oversight of NCUA.

Meanwhile, CUNA is appealing for credit unions to stick together and using its influence to discredit the opposition.  Nevertheless, even the Missouri Credit Union League, a CUNA affiliate, is doing something unusual by hiring its own DC Lobbyist, the former PR person from NCUA.

Not to be outdone, in an effort to protect its regulatory turf, NCUA is equipping itself to fight Filson’s plan and defend itself before Congress. It hired former Congressman Kanjorski’s chief banking committee legislative assistant as its PR guy and political liaison.  (CU Financial Services)