News Now LiveWire

Australian CUs have experienced strong growth in retail deposits at the expense of their regional banking rivals. http://ow.ly/goIE 2 days ago

Yakima Valley CUs have benefited from larger banks troubles as membership, deposit growth, and overall presence expand. http://ow.ly/goHD 2 days ago

Florida Central CU names CUNA board member Laida Garcia as president, CEO. Garcia succeeds the late Ed Gallagly. See http://ow.ly/gnw7 2 days ago

WesCorp detailed cost-saving initiatives-- including roughly 90 layoffs--that aim to roll back expenses to 2003 levels. See July 6 NN. 2 days ago

Wash. State CUs have seen a 313% mortgage loan increase over the last 10 years, with lower car loan, savings deposit increases. See Mon. NN. 2 days ago

more...

---

NCUA seeks Treasury funds for distressed CU assets

ALEXANDRIA, Va. (11/19/08)---National Credit Union Administration (NCUA) Chairman Michael Fryzel asked Congress Wednesday to encourage the U.S. Treasury Department to equip the NCUA to deal with troubled credit union assets.

In a letter to congressional leaders, Fryzel asked federal lawmakers to intervene with the Treasury to secure funds necessary for the NCUA to construct a relief program for troubled assets.

The NCUA chairman said the Treasury's recent decision not to purchase distressed assets under the Troubled Asset Relief Program (TARP), authorized under the Emergency Economic Stabilization Act, was a concern.

He said NCUA stands ready to create a TARP-like program for credit unions, with Treasury back up, to serve as "an important potential avenue of relief." The NCUA would be responsible for establishing standards and procedures for the use of the funds under the plan.

The NCUA letter was sent to the chairmen and ranking members of the House Financial Services Committee and Senate Banking Committee and House and Senate leadership.

Credit Union National Association (CUNA) President/CEO Dan Mica said that access to Treasury funds through NCUA, as suggested by the NCUA chairman, could be "an important backstop for credit unions affected by the economic downturn."

"However," he said, "CUNA continues to hear from credit unions who want a system-based solution that does not rely on Treasury funding to address credit union problems."

Mica noted that there are many ways such a solution could be structured to avoid reliance on taxpayer funds.

"We will continue to work with Chairman Fryzel and the NCUA board to seek such an approach, which is reflective of the cooperative nature of the credit union movement and would not further burden the U.S. taxpayer," the CUNA leader pledged.