Continuing again NCUA's defense of its corporate actions, Chairman Debbie Matz repeated the industry and agency contention today that last Friday's seizures of three corporates "is not a government bailout."
Writing in a Viewpoint section of the American Banker, Matz said it is a "laudable aspect" that the system worked well to handle the failed assets and now stable CUs can repay the guarantees through special assessments.
"NCUA has acted to ensure their credit union service is not disrupted in any way," wrote Matz stressing again, "people will see no changes at their local credit unions."
In her commentary, Matz said that "as for the failed corporate credit unions' impaired assets, they will be securitized as marketable bonds guaranteed by the full faith and credit of the U.S. governments" and on that she said, "that is an explanation, not an excuse."
"To be sure, credit unions were not the only financial institutions to be whipsawed by a plunging economy and suddenly worthless securities," she continued. "But it should not have happened, and NCUA is committed to making sure it does not happen again."