NAFCU is asking NCUA be more transparent and start using astandard bidding process before assets or services of conservedcorporate are sold, it was disclosed this week.

CUNA said it too agrees that transparency concerns need to beaddressed in the handling of the corporates.

In a letter sent to NCUA Chairman Debbie Matz right before theVeterans Day holiday, NAFCU said it specifically is concerned aboutan instance in which the asset of a conserved bridge corporate,which it did not identify, was sold recently "under circumstanceswhere there was apparently no fully competitive and open bidprocess."

While NAFCU recognizes that in certain circumstances "exigenciesmay inhibit a fully open and competitive bid process, in our viewthe preeminent means to minimize losses and to ensure the selectionof the best provider must be through a fully open and competitivebid."

Thus, NAFCU strongly urges NCUA "to issue broad-reachingrequests for proposals to the public" before sales are made and tocommunicate with the industry via its website or by e-mails toCUs.

A spokesman for NCUA said it had just received the NAFCU lettersigned by Fred Becker Jr., president/CEO, and had not had time torespond.

While no mention was made by CUNA of a letter to the agency, aspokesman for CUNA said when issues of transparency arise, "we willpursue those with NCUA as we talk with them frequently on a rangeof issues including the handling of the corporates." Both CUNA andNAFCU are slated to participate in a policy-making one-dayCorporate Summit gathering tomorrow at a Chicago hotel near O'HareAirport.

In their transparency comments, both trade groups also praisedNCUA for its overall role in the corporate restructuring. "We arehearing from credit unions that they give NCUA high marks for itshandling of the conserved corporate credit unions' legacy assets,"CUNA said.

Becker wrote that NAFCU appreciates "NCUA's work in putting inplace and implementing a comprehensive resolution plan."