Executives from the Federal Home Loan Bank of Atlanta are working with the NCUA to draft a Memorandum of Understanding that would define the banks' role in providing liquidity to credit unions, including troubled institutions.
That doesn't mean the NCUA will add the banks to its final emergency liquidity rule, but it is another sign the regulator is reconsidering its position that FHLBs aren't appropriate providers of emergency liquidity.
During the liquidity crunch, corporate credit unions struggled to provide collateral for much-needed borrowings because of the reduced value of their pledged assets, mortgage-backed securities.
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