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CUNA seeks transparency on corporate plan

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WASHINGTON (3/2/09)—The Credit Union National Association (CUNA) has asked the National Credit Union Administration (NCUA) to provide credit unions with more information on how the federal regulator reached its decisions regarding the Corporate Credit Union Stabilization Program. In separate letters to each NCUA board member sent Friday, CUNA also asked for greater transparency on future decisions the agency will have to make regarding the program. Additionally, CUNA President/CEO Dan Mica urged the NCUA to immediately provide to the credit union system upcoming results of a PIMCO report analyzing corporate credit unions’ investments and their potential losses. PIMCO is a leading global investment management firm. Mica noted that that analysis will be significant in determining the agency’s next steps on corporates, including a revised estimate of the cost to the National Credit Union Share Insurance Fund of the corporate credit union deposit guarantee. “In that regard,” wrote Mica, “we urge NCUA to provide a summary of PIMCO’s findings…immediately following the completion of the report, and be completely transparent about the assumptions and modeling relied upon by PIMCO, including how the estimates in the report were developed.” Regarding information on how the NCUA reached its original decisions on the corporate program, CUNA specifically requested:
* The data, assumptions, and analysis it relied upon to decide to implement the Corporate Stabilization Program; * The data, assumptions, and analysis it relied upon to estimate the cost of the corporate deposit guarantee; and * A summary of the PricewaterhouseCoopers report presented to the Board in January.