Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

Treasury TARP must include CUs says CUNA
WASHINGTON (10/30/08)—Although presently it appears unlikely that the credit union system will have a widespread need for capital as proposed by the U.S. Treasury Department’s Troubled Asset Relief Program (TARP), the Credit Union National Association (CUNA) continues to seek access to the program for credit unions. In an Oct. 28 comment letter on the TARP plan, CUNA noted that credit unions generally sought to avoid the kinds of subprime mortgage lending that helped inflame the current economic meltdown. However, the letter added that the Treasury is aware that credit unions do not operate in a vacuum and therefore “will likely not totally escape problems in the broader financial markets.” CUNA also noted its plans to work with the National Credit Union Administration (NCUA) to determine if the federal credit union regulator can develop TARP-like programs that would allow any federally insured credit union that needs to sell troubled assets, apply for additional capital, or obtain asset guarantees will first be able to find a credit union-funded solution before having to call upon taxpayer dollars for help. “Working through NCUA in this manner would also free up Treasury TARP funds for other institutions,” the CUNA letter noted. The TARP program was authorized under the Emergency Economic Stability Act of 2008 (EESA). The troubled assets eligible for the guarantee must have been originated or issued prior to March 14, 2008. The department’s request for comments sought guidance on how the insurance or guarantee program should be established. To read CUNA’s full comments, use the resource link below.

RSS print
News Now LiveWire
Thanks for following our tweets on the NCUA's #listeningsession.
12 hours ago
RT @IllinoisLeague: Mike Daugherty, CEO, Community Plus FCU: I'd like to you to reconsider your repeated 'No's' #listeningsession #fixRBC h…
14 hours ago
CU says definition of complex CU needs to be reviewed, and not just based on asset size. NCUA: We are looking at that. #listeningsession
14 hours ago
NCUA says lots of resources go 2 examiner training,but there's much turnover.Invites ideas on how to improve exam training.#listeningsession
14 hours ago
CU tells NCUA that more benefit could be gained by better examiner training than imposing this "unnecessary" RBC system at #listeningsession
14 hours ago