Even though the NCUA is closer to finalizing its plan to separate $50 billion worth of toxic assets from corporate balance sheets, NCUA Chairman Debbie Matz said recapitalization will still be a tough decision for credit unions.
"You will soon be facing the choice of either recapitalizing a corporate or finding other ways to obtain the same type of services that corporates have provided," Matz told 800 Texas Credit Union League members at their annual meeting April 7.
Four giant corporate credit unions were pushed toward insolvency after the market for mortgage-backed securities halted, creating losses on such a grand scale, recapitalization may be difficult for some, she said.
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