Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

Washington
CUNA FHLB voluntary merger plan enhances safety
WASHINGTON (1/26/11)--The Credit Union National Association (CUNA) in a Tuesday comment letter told the Federal Home Finance Agency (FHFA) that it supports much of a proposed Federal Home Loan Bank (FHLB) voluntary merger rule that “could help maintain a safe and sound FHLB system capable of meeting FHLB-members’ needs.” The merger rule would implement voluntary FHLB merger authority that was added to the FHLB Act by the Housing and Economic Recovery Act of 2008. Many credit unions are members of FHLBs, and FHLBs provide liquidity to credit unions and have frequently awarded affordable housing-related grants to eligible credit unions. While CUNA supported the proposed ratification of a FHLB merger through a membership vote and backed language that would limit the number of votes each member may cast, CUNA questioned whether a proposed state-by-state limitation on FHLB member votes would be appropriate in the FHLB merger context. CUNA emphasized that it is important not to push directorship reductions in a merger to the point where the number of credit union representatives on FHLB boards is reduced. It is already “exceedingly difficult for credit unions to secure election to FHLB boards in the current configuration; it is essential to avoid making this problem worse,” CUNA said. CUNA also noted, however, that FHLB consolidation may create circumstances where it would be appropriate to reduce the number of directorships. Directorships typically represent specific states, and directorships should be equitably apportioned among the states following any FHLB merger, CUNA said. Any related reductions should be phased in slowly, and affected through the agency’s annual designation of directorships or a similar process, CUNA suggested. For the full comment letter, use the resource link.


RSS print
News Now LiveWire
July 's Fed Bank's "FedFocus" has some interesting articles: incl cost/benefits of $1 currency 2 coin conversion ttp://tinyurl.com/nybmnhh
2 hours ago
Do you wish you were a News Now subscriber? Go here: http://t.co/7evfBSjeMx
2 hours ago
Financial education for student body key part of Altura #creditunion, UC-Riverside partnership #NewsNow http://t.co/Xp6OJd66o6
3 hours ago
.@VTcreditunions gains 200 new FB followers in just 2 wks to reach 1,000 http://t.co/I89xJcv4Jg
3 hours ago
.@CUNA is testifying on reg relief Tues,July 15 at 2 p.m. be4 Hs Fin Serv Subc. Here is the agenda and witness list: http://t.co/yBRhlmdqHt
6 hours ago