Wednesday, September 19, 2018

NAFCU's Berger Recession Possible in 2019, NCUA Should Assess Premiums

Dan Berger, the chief executive of the National Association of Federally-Insured Credit Unions (NAFCU), is arguing that U.S. economy could be in a recession as soon as the end of 2019.

Appearing on Hill.TV's "Rising", Mr. Berger stated that " [t]he recession could hit end of 2019 — maybe the first quarter of 2020," if a very large bank was to fail.

As background, NAFCU is advocating for the reinstatement of the Glass-Steagall Act, which separated commercial banking from investment banking.

Given Mr. Berger's dire prediction of an imminent recession, the National Credit Union Administration should immediately assess premiums on all federally insured credit unions to ensure that the National Credit Union Share Insurance Fund has adequate resources to resolve credit union failures.

Also by preemptively assessing premiums, this would limit any spike in premium assessments at the very moment that credit unions would have difficulty affording these higher assessments.

Read the story.


  1. Fascinating.
    Berger, he of the inflated benefit of cu membership to consumers pronouncements off shaky research that only nafcu sees. Now predicting recession while discussing a topic he clearly does not understand...since, the repeal of glass Steagall has NOTHING to do with the bubble.
    Ambulance chasing for fee relevance.
    As far as the insurance fund goes, credit unions are so far behind the bank industry in true insurance fund solvency that it’s now dereliction of duty by congress.
    Disagree with your conclusion dr. Leggett. The first thing that needs to be done is what NCUA proposed to congress a few years ago. NCUSIF should be calculated the same way FDIC does it.
    We just did a board meeting where s consultant showed us the comparison.
    What’s the hold up?

    1. It would require legislation to change how the NCUSIF is calculated.

    2. why would you have that presentation at a board meeting? Don't you have better things to do?

    3. Why would you think that wa the main thrust of the consultant s presentation?
      It was a small part of an overall.
      More important question is why aren’t you asking what it’s about, given it’s a potential major capital event?



The content is provided for educational purposes only, with the understanding that neither the authors, contributors, nor the publishers of this site are engaged in rendering legal, accounting or other expert or professional services. If legal or other expert assistance is required, the services of a competent professional should be sought.

Comments appearing in response to articles appearing on this site do not necessarily reflect the views of the ABA. ABA makes no representations regarding the truth or accuracy of commentary or opinions that may be posted in response to the articles that appear on this website.

The inclusion herein of any link to a website, either in the text of an article or in a comment, does not denote any approval, sponsorship, or endorsement by the ABA, and ABA is not responsible for the content or opinions expressed on those linked websites or related commentary. This content is not licensed to third parties sites and is not affiliated with any third party site. Any reference to the author or this content on any third party site on the Internet is not authorized by the ABA.

It is the policy of the American Bankers Association to comply fully with all antitrust laws. Certain discussions should be considered off-limits, including those that contain competitively sensitive data such as price and cost information, or statements that could be construed as reflecting an attempt or desire to control or influence a particular market or markets. Future pricing or other prospective competitive information should never be shared.