The NAFCU Journal May - June 2017 - 2

OUR FIRST 50 YEARS: SNAPSHOT

More Breathing Room
and Better Protections

W

hen a few federal credit
union executives lunched
together in 1966 at the
Cockatoo Inn in Inglewood, Calif., the discussion centered
on whether federal credit unions in
California were getting a fair shake
from the legislators and regulators in
Washington, D.C.

This initial meeting birthed NAFCU
a year later - with a mission to voice
federal credit unions' concerns to those in
Washington. The association's federal credit
unions wanted more breathing room,
more powers and better protections.
As a start, the group aimed to modernize
the Federal Credit Union Act and establish share insurance for federal credit
unions. That mission was accomplished
in 1970 through the establishment of
an independent regulator, the National
Credit Union Administration (NCUA),
and the creation of the National Credit
Union Share Insurance Fund (NCUSIF).
The path to success for these proposals,
the first big "wins" for NAFCU and its
members, required a steady focus and
unflagging determination from beginning to end.
H.R. 2 was introduced in 1969 by
House Banking and Currency Committee Chairman Wright Patman, D-Texas.
The bill would establish the NCUA as
an independent agency to administer
the Federal Credit Union Act. The
chief executive at the agency would
be a political appointee chosen by the
president. In making the appointment,
the president would give special consideration to nominations from those
2

organizations that represented a majority of credit unions - and NAFCU was
not among them.
In response, NAFCU, with 150 of the
larger federal credit unions as members,
issued a proposal outlining its position
for a complete national credit union
system - including an NCUA bank,
share insurance corporation, regional
advisory council and NCUA board.
A revised H.R. 2, containing most of
NAFCU's changes, passed the House
with the support of 357 representatives. The bill then moved to the Senate,
where it also passed 73-15, and it was
signed into law by President Richard
Nixon in 1970.
Scoring its first major legislative win,
NAFCU, with renewed momentum,
turned its attention to another goal:
securing federal share insurance.
In the spring of 1970, Sen. Wallace
Bennett, R-Utah, introduced S. 3822,
which contained a NAFCU-inspired
provision to establish federal share
insurance. When the bill passed the
Senate, it represented a major victory
for NAFCU, despite opposition from
banks, savings and loan interests, and
other credit union trade associations.
Patman introduced a House version of
the bill, H.R. 18870, which passed the
House in October and was subsequently
signed by Nixon.
Administered by the NCUA, the NCUSIF
would assess an annual premium of 1/12
of 1 percent of a federal credit union's
shares - or 83 cents per $1,000 of shares
per year under normal circumstances.
In exchange, the fund would provide

NAFCU announced the 1970 passage of
federal share insurance for credit unions in
its early newsletter, the Washington Line.

insurance against financial losses of
members' savings up to $20,000 in all
federal credit unions (and qualified state
credit unions) that applied.
Federal credit unions saw the benefits of
the share insurance legislation immediately. By March 1972, federal credit union
assets topped those of state credit unions.
In a 1983 NCUA report to Congress
on the share insurance fund, NAFCU
is quoted as saying, "It is particularly
essential that credit unions have federal
insurance equal to that of other financial
institutions. ... While credit unions did
grow and prosper during the period
without federal insurance, we firmly
believe that it would be impossible for
them to have become as strong an industry as they are today without the backing
of a federal share insurance fund."
These early victories gave NAFCU name
recognition and influence that it has
fervently used to protect and strengthen
credit unions for the past 50 years. The
association's mission has not changed from
that initial meeting of credit union leaders.
Today, all federally-insured credit unions
may join, further strengthening the association's voice and ability to represent its
members before Congress, regulators and
policy makers at the federal level.
THE NAFCU JOURNAL MAY-JUNE 2017


http://www.nafcu.org/50/

Table of Contents for the Digital Edition of The NAFCU Journal May - June 2017

Our First 50 Years
Events Calendar
From the Chair
Inside NAFCU
The Digital Download
50 Ways to Grow Your Credit Union Professional and operational
Fields of Opportunity
2017 Annual Conference Exhibitor Directory
Getting to Know …
Management Insight
Compliance Central
Inside NAFCU Services
From the President’s Desk
The NAFCU Journal May - June 2017 - Cover1
The NAFCU Journal May - June 2017 - Cover2
The NAFCU Journal May - June 2017 - 1
The NAFCU Journal May - June 2017 - Our First 50 Years
The NAFCU Journal May - June 2017 - Events Calendar
The NAFCU Journal May - June 2017 - From the Chair
The NAFCU Journal May - June 2017 - 5
The NAFCU Journal May - June 2017 - Inside NAFCU
The NAFCU Journal May - June 2017 - 7
The NAFCU Journal May - June 2017 - 8
The NAFCU Journal May - June 2017 - 9
The NAFCU Journal May - June 2017 - 10
The NAFCU Journal May - June 2017 - 11
The NAFCU Journal May - June 2017 - 12
The NAFCU Journal May - June 2017 - 13
The NAFCU Journal May - June 2017 - The Digital Download
The NAFCU Journal May - June 2017 - 15
The NAFCU Journal May - June 2017 - 50 Ways to Grow Your Credit Union Professional and operational
The NAFCU Journal May - June 2017 - 17
The NAFCU Journal May - June 2017 - 18
The NAFCU Journal May - June 2017 - 19
The NAFCU Journal May - June 2017 - 20
The NAFCU Journal May - June 2017 - 21
The NAFCU Journal May - June 2017 - Fields of Opportunity
The NAFCU Journal May - June 2017 - 23
The NAFCU Journal May - June 2017 - 24
The NAFCU Journal May - June 2017 - 25
The NAFCU Journal May - June 2017 - 26
The NAFCU Journal May - June 2017 - 27
The NAFCU Journal May - June 2017 - 28
The NAFCU Journal May - June 2017 - 2017 Annual Conference Exhibitor Directory
The NAFCU Journal May - June 2017 - 30
The NAFCU Journal May - June 2017 - 31
The NAFCU Journal May - June 2017 - 32
The NAFCU Journal May - June 2017 - 33
The NAFCU Journal May - June 2017 - 34
The NAFCU Journal May - June 2017 - 35
The NAFCU Journal May - June 2017 - 36
The NAFCU Journal May - June 2017 - 37
The NAFCU Journal May - June 2017 - 38
The NAFCU Journal May - June 2017 - 39
The NAFCU Journal May - June 2017 - 40
The NAFCU Journal May - June 2017 - 41
The NAFCU Journal May - June 2017 - 42
The NAFCU Journal May - June 2017 - 43
The NAFCU Journal May - June 2017 - Getting to Know …
The NAFCU Journal May - June 2017 - 45
The NAFCU Journal May - June 2017 - Management Insight
The NAFCU Journal May - June 2017 - 47
The NAFCU Journal May - June 2017 - Compliance Central
The NAFCU Journal May - June 2017 - 49
The NAFCU Journal May - June 2017 - Inside NAFCU Services
The NAFCU Journal May - June 2017 - 51
The NAFCU Journal May - June 2017 - From the President’s Desk
The NAFCU Journal May - June 2017 - Cover3
The NAFCU Journal May - June 2017 - Cover4
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