NCUA Director of Public and Congressional Affairs John McKechnie responded to criticism of the agency's decision to hire PIMCO to help determine corporate investment portfolio values.
"NCUA, like the Fed and FDIC, uses private-sector entities such as PIMCO to supplement our own information about very technical, very specialized matters such as bond portfolio holdings in corporate credit unions," McKechnie said.
"The information supplied by PIMCO enabled NCUA to gain additional details about mortgage backed security holdings, the structure of investments, and potential losses that could occur from impairments. It did not dictate NCUA actions in conserving the two corporate credit unions."
He continued, saying, "It is also important to note that any valuations arrived at by PIMCO were considered by NCUA in the context of our own review-NCUA did not ask for 'stand alone' analysis by PIMCO that would have enabled them to derive inaccurate or artificially high or low numbers, as is being alleged."
Despite calls for more transparency in the PIMCO deal, McKechnie stood firm with the agency's original policy.
"Details of the PIMCO engagement, such as PIMCO's methodology and other confidential, proprietary information, are not public," he said.
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