NCUA to Reveal Legacy Assets Plan in June
NCUA Chairman Debbie Matz said today the agency hopes to announce a plan for corporate legacy assets by the end of June, before final corporate regulations are released.
She made the announcement to nearly 100 industry executives at the Missouri Credit Union Association's 2010 Advocacy and Business Meeting.
"The plan would empower retail credit unions to choose which corporates they will support. And it would ensure that those corporates begin with clean balance sheets," she said.
If the plan proceeds as the NCUA envisions, Matz said, it "could even allow retail credit unions to recover future earnings from legacy assets that outperform current loss projections." However, she cautioned the plan is still a "work in progress" and said questions about underwriting, funding and accounting still remain unanswered.
CUNA's Dan Mica quickly responded to the announcement, saying Matz's "timetable of addressing this issue before the proposed corporate rule is finalized is commendable and indicates the agency's willingness to listen and work toward a fair solution. CUNA will continue to work with her and the agency."
Matz asked credit unions to be patient, calling the June target date "cautiously optimistic."