Proposed Corporate Stablization Fund; NAFCU Today
Posted by Steve Van Beek
Today, NCUA held a closed board meeting to discuss the Corporate Stablization Program. The result of the board meeting was a proposal for a Corporate Credit Union Stabilization Fund. Here is a snippet from the press release:
"The National Credit Union Administration (NCUA) Board today approved a proposal that would enable credit unions to spread the cost of the National Credit Union Share Insurance Fund (NCUSIF) replenishment over as much as a 7-year period.
The proposed legislation would create a mechanism, the Corporate Credit Union Stabilization Fund, to absorb losses associated with the corporate credit union stabilization actions and assess federally insured credit unions for associated costs over as much as a 7-year period. If enacted into law, the proposal:
The proposed legislation would create a mechanism, the Corporate Credit Union Stabilization Fund, to absorb losses associated with the corporate credit union stabilization actions and assess federally insured credit unions for associated costs over as much as a 7-year period. If enacted into law, the proposal:
- Should allow insured credit unions to expense these assessments over time;
- Is consistent with generally accepted accounting principles (GAAP); and
- Is limited in use to only pay for losses incurred by corporate credit unions."
The proposed language of the Corporate Credit Union Stabilization Fund legislation is available. The next step is for NCUA to bring its proposal to Congress.Â
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Anthony, Sarah, and I have been trying to keep you all informed and up-to-date on actions being taken on the Hill and at NCUA. We try - but it is a tough task. NAFCU also produces the NAFCU Today - a free daily news e-mail - available to both NAFCU and non-NAFCU members. If you are looking for the latest information affecting CUs - this is your source. If you want to get a feel for what the daily news looks like - click here and you can see the latest stories.   Â