Corporate plan would cost Polish/Slavic FCU $7.5 million
BROOKLYN, N.Y. (2/10/09)--The National Credit Union Administration's (NCUA) corporate stabilization program would cost Brooklyn, N.Y.-based Polish and Slavic FCU (PSFCU) $7.5 million, PSFCU said.
"This bailout will actually hurt us, as our insurance premiums to the National Credit Union Share Insurance Fund will increase $7.5 million just to prop up these failing institutions," said Bogdan Chmielewski, PSFCU CEO, in a press release.. "Although we remain financially sound and have adequate reserve funds, this is going to negatively impact our bottom line."
PSFCU has 70,000 members and $1.2 billion in assets. It has joined several natural-person credit unions to support the demand that NCUA control the corporate credit union system.
NCUA said it would provide $1 billion for the corporate stabilization program. The $1 billion injection is intended to provide reserves to offset anticipated realized losses on some mortgage- and asset-based securities held by U.S. Central, known as the "corporates' corporate" (News Now Jan. 29).
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