WASHINGTON (5/18/09)—Credit Union National Association President/CEO Dan Mica on May 15 urged the National Credit Union Administration (NCUA) to "act favorably and expeditiously" to address concerns that credit unions nationwide have raised about NCUA's efforts to stabilize the corporate credit union system.
Citing recent discussions with credit union league presidents, the Association of Corporate Credit Unions, and representatives from various state and federal credit unions, CUNA has asked NCUA to provide credit unions with more detailed information on the assumptions used to determine estimated losses related to mortgage- and asset-backed securities.
Additionally, CUNA recommended that the NCUA waive any penalties that may be assessed on credit unions whose payments into the National Credit Union Share Insurance Fund cause their net worth ratios to fall. CUNA also called on the NCUA to support the use of the Central Liquidity Facility to provide greater liquidity to corporate credit unions.
Existing plans to "extinguish" all capital accounts in WesCorp FCU and all paid-in capital and 63 percent of member capital shares at U.S. Central Corporate FCU could prevent account holders from benefiting from any potential recovery of these credit unions' mortgage- and asset-backed securities. In the letter, CUNA also suggested that NCUA grant a share of any recovery that is gained from these mortgage- and asset-backed securities to capital holders.
courtesy of cuna.org