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Jul 30, 2010
Categories: Operations Accounts Home-Secured Lending

NCUA Board Meeting; This and That

Posted by Anthony Demangone

Yesterday, NCUA held its monthly board meeting.  You can access all the draft materials here.  NAFCU has written an article highlighting the meeting here.  Of note:

  • Golden Parachutes. NCUA approved a proposal that would do two things.  It would, with exceptions, generally prohibit "troubled" credit unions from entering into contracts that include "golden parachutes."  The prohibition would contain a grandfather clause to exclude all existing agreements.  But if finalized, new and amended agreements could come under the rule.  As noted above, this restriction would only apply to "troubled" credit unions, which include those that are CAMEL 4 or 5, in conservatorship, as well as a few other categories. The rule would also prohibit indemnification payments for all credit unions in certain situations that are outlined in the rule. 
  • Truth in Savings. The board also approved amendments to NCUA's Truth in Savings regulation to bring it into line with Regulation DD. The comments address retail sweep accounts and the terminology for overdraft protection disclosures. (Nothing new here, folks.)

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    In other news...

    • The CFPB may be poaching employees from other agencies, NCUA included.  (Washington Post.)
    • The FFIEC has a new SAFE Act homepage, which contains a ton of useful information for credit unions with questions about the recently published final rule.
    • Regarding gift cards, President Obama has signed H.R. 5502 into law, which delays the effective date of the Regulation E gift card disclosure rule until January 31, 2011 for cards produced before April 1, 2010.  Without the move, retailers were worried that millions of unsold gift cards would go to waste and be unusable for the upcoming 2010 holiday season.  I'm thinking the Fed will issue some regulatory clarification due to this change. 
    • Is Reg GG going bye-bye, at least in its current form? Perhaps.  A bill is working its way forward that would relieve the regulatory burden with the current internet gambling regulation.

    That's enough for today.  Have a great weekend, everyone.

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