Regulatory & Compliance

Credit union leaders Monday were voicing support, albeit reluctant, for the NCUA takeover of two corporate credit unions.

The "very severe earnings hit" on credit unions by NCUA's corporate takeovers should now force the Treasury and Congress to come up with a CU aid package, the president/CEO of The Golden l CU of Sacramento said Monday.

Saying that stress tests revealed "an unacceptably high concentration of risk," the NCUA today placed U.S. Central Federal Corporate Credit Union and Western Federal Corporate Credit Union into conservatorship and removed their boards and top executives.

Credit union CEOs representing CUNA and NAFCU today urged lawmakers to increase the NCUSIF's borrowing authority with the Treasury Department to $100 billion and allow the CLF to lend to corporate credit unions.

ALEXANDRIA, Va. - Despite the market's volatility and three credit union failures last month, the NCUSIF's equity ratio stayed at 1.28%, NCUA Chief Financial Officer Mary Ann Woodson told the NCUA Board today.

WASHINGTON -NCUA Chairman Michael E. Fryzel told a Senate panel today that credit unions are "unique and distinct institutions that require a unique and distinct regulator."

A top official of NCUA and representatives of CUNA and NAFCU are scheduled to testify at a Senate hearing tomorrow on deposit insurance.

The cost of mortgages and other loans could decline as a result of today's decision by the Federal Reserve to buy up to $300 billion of Treasury securities during the next six months and an additional $750 billion worth of mortgage-backed securities.