There's a lot of concern about ASI in Nevada which has several major credit unions that depend on ASI for its deposit insurance. One of these credit unions, Silver State Schools Credit Union, has been hit hard by the Nevada real estate bust. It's the largest credit union in Nevada. The Las Vegas Review-Journal has reported on several developments with Silver State Schools and ASI this month. The CEO of Silver State Schools resigned from his job in December. He then returned to his job in less than a week after his resignation was disclosed. On the issue of ASI, the chairwoman of the NCUA, Deborah Matz, said the following at a conference earlier this month:
"If ASI, if one of their large credit unions fails, and they don't have the capital to pay out, those (credit union) members will not have their funds protected," Matz said in response to a question at the Credit Union Executive Society meeting in Palm Desert, Calif., on Dec. 9. "They will lose all their funds."
As you might expect the ASI CEO is trying to downplay these concerns, and as reported by Credit Union Times, Silver State Schools CEO also spoke up on this issue, and claimed "that NCUA Chairman Deborah Matz was unduly engaging in "scare" maneuvers to get rid of private insurance."
I wonder how many Velocity Credit Union members were aware of these developments in Nevada. It's too late now. The members vote at Velocity Credit Union is over. I just called Velocity, and I was told by the CSR that the results won't be known until the end of January.
For more information on ASI and the process credit unions must go through to drop federal insurance, please refer to my ASI review in September.