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

Washington
NCUA says guidance coming on extinguishment
ALEXANDRIA, Va. (4/16/09)—The National Credit Union Administration (NCUA) intends to issue its next accounting guidance on corporate credit union issues Friday as part of its weekly release of information on the corporate situation. NCUA Deputy Executive Director Larry Fazio, on a conference call with reporters Wednesday, said the guidance will address the impairment—what the agency is now terming ”extinguishment”—of any OTTI statement that U.S. Central FCU or Western Corporate FCU (WesCorp) make on their March 31 financial reports. The two corporates were place in conservatorship in March. Fazio said that to the extent either entity has to execute an OTTI—or other-than-temporarily-impaired--charge for the March statement, it will be realized as a loss that will “eat through” their retained earnings, and then their paid-in capital accounts, and, to a varying extent, their membership capital accounts. “So that will extinguish those portions of the membership capital and paid-in capital,” Fazio said. “Therefore credit unions that are members will have to write down on their financial statements those instruments, and realize a loss on those.” Credit Union National Association (CUNA) Deputy General Counsel Mary Dunn noted Wednesday that credit unions have raised serious concerns about the implications of the extinguishment of capital in the two corporates. CUNA, she said, is pursuing these concerns with NCUA board members.


RSS





print
News Now LiveWire
.@LACULeague in @DailyComet: #creditunions' "old" benefits attractive to new generation http://t.co/AzOv3nB7IB
1 hour ago
At @FTC request, court halts operations of an alleged debt-relief scammer calling itself “FTC Credit Solutions.” http://t.co/qMsDBmKExH
6 hours ago
.@daytondailynews : The secret is out about #creditunions http://t.co/Aqu3pFTROV @DayAirCU @CODECreditUnion
6 hours ago
.@CUNA's @Nussle on @SenatorReid :(2of2)On behalf of more than 102M #CU members,I thank him 4 his leadership over the yrs/wish him the best.
8 hours ago
.@CUNA CEO Nussle on Sen. Reid’s decision not 2 seek re-election (1of2): Sen. Reid has a long history of #CU support throughout his career.
9 hours ago