Matz Says Solving Corporate Woes Will Help Industry Turn Corner
WASHINGTON -- The NCUA's finalization of its revamped corporate credit union rules and plan for dealing with legacy assets will enable the industry to begin turning the corner on a "painstaking and frustrating period," Chairman Debbie Matz told attendees at NAFCU's Congressional Caucus.
She said the rule, which was scheduled to be released after press time, emphasizes "realism, rigor and responsibility." Matz added that it will strengthen capital requirements, limit the average life of assets to prevent liquidity risks, ban the purchase of private-label asset-backed securities and raise standards for board member requirements.
On legacy assets, she said there is "no easy way to unbundle about $50 billion worth of long-term assets." A main goal of the agency's plan is to "devise a way to safely deal with legacy assets at the lowest possible cost and consistent with sound public policy."
The NCUA Board is scheduled to hold a special meeting on Friday afternoon to deal with the corporate rule and legacy assets.
NCUA Board Member Michael Fryzel told the group that by taking the best ideas of the past and new ideas, credit unions will have "a future better than their extraordinary past."
He urged attendees to take their "energy and confidence back from this place to your home communities."