Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive
150x172_CUEffect.jpg
Contacts
LISA MCCUEVICE PRESIDENT OF COMMUNICATIONS
EDITOR-IN-CHIEF
MICHELLE WILLITSManaging Editor
RON JOOSSASSISTANT EDITOR
ALEX MCVEIGHSTAFF NEWSWRITER
TOM SAKASHSTAFF NEWSWRITER

News Now

CU System
Maine CUs well-positioned to absorb corporate plan
KENNEBEC, Maine (2/17/09)--Credit unions in Maine are reassuring a local newspaper that they are well-positioned to absorb any hit in capital they'd take under the National Credit Union Administration's currently proposed Corporate Stabilization Program. Sebasticook Valley FCU, Pittsfield, noted that a higher premium to absorb losses in the corporate system would deplete its capital and it would have to delay some capital improvements. However, Sebasticook President Jim Lemieux and other credit unions told the Kennebec Journal Morning Sentinel (Feb. 15) that they have enough capital on hand to see them through increases in insurance premiums from the program. Rick Lachance, president of Maine Education CU, based in Augusta, told the publication the industry as a whole is well-positioned to absorb the premiums "if it comes down to that." Maine Credit Union League John Murphy told the newspaper that the premium is an issue from a budgeting standpoint. Credit unions nationwide currently have the average equity-capital of 11.2%. Assuming additional insurance fees would reduce the industry average to a 10.5% ratio. Waterville-based New Dimensions CU also assured the newspaper the credit union was prepared. The credit union, which has $46 million in assets, would see its insurance assessment increase by $305,000 under the stabilization plan, according to President Ryan Poulin. Augusta-based Maine State CU, with $245.1 million in assets, would likely assume $1.7 million more in insurance premiums in the corporate program. Maine State CEO Norman Dubreiul suggested holding corporate credit unions to the same conservative standards that govern natural person credit unions, according to the Journal.
Other Resources

RSS





print
News Now LiveWire
What role are #creditunions playing in @gatesfoundation's 2030 vision of financial services? Read #NewsNow Monday
5 hours ago
Consumers fear inaccurate info lingers on credit reports, says @FTC study Read @CUNA's News Now: http://t.co/RzNLMnaROO
7 hours ago
@PCUA has formed a @LinkedIn networking group for former bankers turned #creditunion employees.
7 hours ago
.@politico reports Democrats haven't picked the city yet, but their 2016 convention will be held the week of July 25.
7 hours ago
.@cuna, @DCUC_HQ urge @CFPB to exempt #CUs from changes to Military Lending Act rules cuz CUs aren't part of the targeted problem. NN Monday
9 hours ago