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
Senate bill addresses NCUA resolution tools some net worth
WASHINGTON (12/20/10)—A “technical corrections bill” passed by the Senate late last week could give the National Credit Union Administration (NCUA) new tools to deal with the corporate credit union situation and troubled credit unions. The bill (S. 4036) also orders a government study of the NCUA’s supervision of the corporate credit unions, as well as its implementation of prompt corrective action (PCA) rules for both corporate and natural person credit unions. The new NCUA resolutions tools would be created by S. 4036 through changes to the Federal Credit Union Act. If enacted, the bill would permit the NCUA to make payments to the Temporary Corporate Credit Union Stabilization Fund without borrowing from the U.S. Treasury—a step the NCUA seeks as a means to hold down costs to credit unions. Another provision of the legislation would give credit unions the ability to count 208 assistance as net worth for the purposes of prompt corrective action. would allow section 208 assistance provided by the NCUSIF to a credit union to count toward the credit union’s net worth, at the agency’s discretion. A third provision clarifies that the equity ratio of the share insurance fund—the National Credit Union Share Insurance Fund (NCUSIF)--is based solely on the unconsolidated financial statements of the NCUSIF. The study ordered by the bill would be conducted by the Comptroller General of the U.S. The Comptroller General would be charged with the following responsibilities:
* Determine the reasons for the failures of any corporate credit union since 2008; * Evaluate the adequacy of the NCUA’s response to the failures of the corporates, including how taxpayers were protected, how moral hazards were avoided, costs were minimized in the resolution process, and “the ability of insured credit union to bear any assessments levied to cover such costs”; * Evaluate, as mentioned above, the effectiveness of PCA implementation; and * Examine whether the agency has been effective in implementing recommendation made by its Inspector General contained in Material Loss Review Reports, or the adequacy of the NCUA’s reasons for not doing so.
The Comptroller General is ordered to report back to the Senate Banking Committee and House Financial Services Committee within six months after enactment. The bill is expected to pass the House with expediency and then will be sent to the President to be signed into law.


RSS





print
News Now LiveWire
.@fileneresearch IDs 5 challenges for #women in #creditunion leadership http://t.co/GAYbw2dcCl
41 minutes ago
It's Monday, time for another data breach release: @Uber's driver database via @pymnts #Stopthedatabreaches http://t.co/UoMcy4j5n4
1 hour ago
.@Nussle, Cummins share #creditunion difference with Minn. biz journal http://t.co/7EZ4FdgfD9
2 hours ago
.@cuna #GAC2015 countdown: @USTreasury 's Gerety, @CFPB 's Martinez join power-packed lineup http://t.co/nHNJ81tGbi
3 hours ago
A recent report from @TransUnion says consumers born 1981 or later made up 27% of total auto-loan originations in 2014, up 16% from 2009.
23 hours ago