NATIONAL HARBOR, Md. -- Costs to natural persons and the issue of whether they have to be connected to corporate credit unions were key issues at today's NCUA Town Hall meeting.
The agency's senior staff members heard pointed questions about the compliance costs of the new rules regarding corporate credit unions.
One person asked NCUA General Counsel Bob Fenner whether they could "create a wall'' between natural person and corporate credit unions since a majority of natural person credit unions don't invest in corporates.
Fenner said that's impossible given the credit union system's cooperative nature. He also said if only credit unions that had invested in corporates had been responsible for rescuing them it would have had a "cascading effect'' that would have caused widespread losses throughout the system.
In response to another question, NCUA Deputy Executive Director Larry Fazio said the agency had no timeline for releasing U.S. Central from conservatorship and said it depends on a variety of factors, including the ability to deal with its capital problems more effectively.
Today's meeting is the second of three scheduled sessions.
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