Cheney Defends CUs on 'Squawk Box'

He emphasizes that NCUA's action 'won't cost taxpayers a dime.'

October 11, 2010

CUNA President/CEO Bill Cheney appeared live this morning on CNBC’s Squawk Box to talk about credit unions and whether the National Credit Union Administration’s (NCUA) plan for dealing with the corporates constitutes a credit union bailout.

Cheney used the opportunity to set the record straight on the bailout question. He emphasizes that “this is not a bailout in any way, shape, or form” and that NCUA's action “won't cost the taxpayers a dime.”

Asked about a “worst case” scenario, he said even if the costs reached high-end estimates of $15 billion, credit unions have the capacity to pay that off over 11 years.

He further explains the difference between corporates and regular natural person credit unions and stresses that “the credit unions consumers deal with will continue to do a great job, as they always have, serving their members.”

Watch Cheney now: