Board Unlikely to Take Up Capital Report, Short-Term Hill Prospects Bleak
The NCUA plans no discussion or action "at this time," on the agency report issued this week that supported the idea of secondary capital for credit unions, NCUA Chairman Debbie Matz said.
Through a spokesman, Matz added that if "Congress gives NCUA supplemental capital authority we will of course act."
Although the agency isn't likely to act on the report, in a letter sent to House Financial Committee Chairman Barney Frank in December Matz urged lawmakers to give the agency the right to allow credit unions to accept secondary capital. She did not specify what form that capital should take. The Treasury Department hasn't taken a position on the issue.
Lawmakers are unlikely to take up the issue this year, according to lobbyists for CUNA and NAFCU and several lawmakers who have been interested in the issue in the past declined comment on the NCUA report.
NAFCU Director of Legislative Affairs Brad Thaler said while his association is continuing to lobby on the issue on Capitol Hill, lawmakers have other priorities this year, including passing regulatory reform.
NCUA Board Member Gigi Hyland, who headed the agency panel that wrote the report, declined to say when or whether Congress will take up the subject. But she said she hoped that if Congress takes up legislation it won't tie the agency's hands too much.