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NCUA names Hunt as corporate CU director

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ALEXANDRIA, Va. (9/28/09)--The National Credit Union Administration (NCUA) on Friday named Scott Hunt as its Director of the Office of Corporate Credit Unions. In comments accompanying the announcement, NCUA Chairman Debbie Matz said that Hunt’s “talent, knowledge and dedication” to the issues currently faced by corporate credit unions “is well-known and has produced real results.” Hunt’s “background and skill set” also “make him uniquely qualified for this crucial position,” she added. Hunt most recently served as acting special assistant and, before that, as acting director of the corporate office. Hunt, who joined the NCUA in 1989, has also served in several other roles, including as an examiner and as associate regional director and senior investment officer in the NCUA’s Office of Capital Markets.

CDFI funding announced Matz urges participation

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WASHINGTON (9/28/09)--The U.S. Department of the Treasury this week announced that it will make a total of $113 million in funding available through its Community Development Financial Institutions Fund (CDFI Fund) during the upcoming year. The Treasury's CDFI Fund helps locally based financial institutions offer small business, consumer and home loans in communities and populations that lack access to affordable credit. The fiscal 2010 CDFI funding round is the 15th since the program’s inception, and was announced 15 years to the day that the CDFI Fund was created by the signing of H.R. 3474, the Riegle Community Development and Regulatory Improvement Act of 1994. In a statement accompanying the release, CDFI Fund Director Donna Gambrell said that she is “delighted to celebrate the CDFI Fund’s 15th Anniversary” by announcing the “largest-ever annually appropriated funding round” of the “cornerstone CDFI Program.” National Credit Union Administration (NCUA) Chairman Debbie Matz in a separate release encouraged credit unions to use the CDFI program as a means to “expand service to low-income consumers.” Consumers across the income spectrum benefit when credit union service is made more accessible, and CDFI has been a reliable partner for many credit unions in making this a reality,” Matz added. According to the NCUA, credit unions that are certified to take part in the CDFI program may apply for as much as $2 million in funding that will help maintain their credit union’s presence in the community. To see the CDFI Fund release, use the resource link.

Nance removed as U.S. Central conservator manager

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ALEXANDRIA, Va. (9/28/09)--U.S. Central Senior Vice President and General Counsel Francois Henriquez will step in as interim CEO after the U.S. Central Conservatorship Advisory Board voted to remove James Nance from his position as CEO, the National Credit Union Administration (NCUA) reported on Friday. Henriquez will oversee the activities of U.S. Central as the corporate credit union searches for a successor to Nance. In a statement, the NCUA said that while Nance "provided critical management skills" during U.S. Central's conservatorship, the decision to remove Nance from his position "was taken due to divergent views about how to move U.S. Central forward." In financial statements for the 2008 fiscal year released earlier this month, U.S. Central's auditors reported that the corporate credit union incurred an OTTI charge of $4.9 billion on its investments as of Dec. 31, 2008. To view an NCUA Frequently Asked Questions (FAQ) regarding the U.S. Central financial statement, use the resource link.

Inside Washington (09/25/2009)

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* WASHINGTON (9/28/09)--Credit quality significantly declined for loan commitments of $20 million or more held by multiple federally supervised financial institutions, according to the 2009 Shared National Credit (SNC) Review. Nonbanks held 47% of classified assets in the portfolio. Criticized assets--those seen as substandard--reached $642 billion, up from $373 billion last year. Classified assets increased to $447 billion from $163 billion. Special mention assets--those that exhibit potential weakness--declined to $195 billion from $210 billion. The severity of criticism increased with the volume of Shared National Credits classified as “doubtful” and “loss rising” to $110 billion, up from $8 billion in 2008 ... * WASHINGTON (9/28/09)--At a hearing last week, lawmakers urged the Treasury to let the Troubled Asset Relief Program (TARP) expire at year-end, but the Obama administration did not appear to give in. Treasury can extend TARP until Oct. 3, 2010. Several lawmakers said the economy has improved, so the program should end. Some Americans think TARP is becoming status quo, which leads to more government involvement in the marketplace, said Sen. David Vitter (R-La.). Senate Banking Committee Chairman Christopher Dodd said TARP can’t be permanent, but did not indicate if the program should be extended. Conversely, House Financial Services Committee Chairman Barney Frank (D-Mass.) told reporters Wednesday that TARP should be extended. Several banks have repaid their capital infusions from TARP back to the Treasury and the Treasury department expects more to be repaid within the next year and a half ... * WASHINGTON (9/28/09)--Reps. Barney Frank (D-Mass.) and Carolyn Maloney (D-N.Y.) introduced a bill Thursday to enact parts of the Credit Card Accountability, Responsibility and Disclosure (CARD) Act more quickly. The credit card industry has balked at the idea. Some of the CARD Act’s provisions gone into effect, with other provisions to be effective Feb. 22. Maloney and Frank’s bill would push that date to Dec. 1. Maloney and Frank criticized credit card issuers at a press conference Thursday for claiming that they needed until next spring to prepare for CARD Act rules. Card issuers are using the time to maximize profits by raising rates to make money off of consumers before the new rules are effective, the two legislators said. Frank and other policymakers have discussed moving ahead with the CARD Act compliance date. Frank said he thought the House could pass a bill on the matter within the next few weeks ... * WASHINGTON (9/28/09)--Rep. Paul Kanjorski (D-Pa.), chairman of the House Financial Services subcommittee on capital markets, insurance, and government sponsored enterprises, announced that he will conduct a hearing to examine reforming the regulation of credit rating agencies. The hearing is scheduled for Sept. 30 at 2 p.m. ET ...