Matz Extols Virtues of Corporate Plans to State Regulators
SAN ANTONIO -- NCUA Chairman Debbie Matz told state regulators that the corporate credit union reforms do more than just repair existing damage.
"We can assure you that this crisis will never happen again," she said during a speech at the Thursday session of the NASCUS State System Summit.
"After deducting $1.3 billion in losses that have already been covered, there are $7.0 to $9.2 billion of projected assessments remaining. These figures represent an increase from previously posted Corporate Stabilization Fund reserve levels. The vast majority of the increase is due to updated loss estimates on all underlying corporate assets. This is not due to the resolution strategy itself," she explained. "These costs still to be paid will need to be assessed over the remaining life of the Corporate Stabilization Fund. Now that the Treasury Secretary has agreed to extend the fund from its original expiration date of 2016 to 2021, the NCUA board will have more flexibility in spreading out these assessments to the extent possible to reduce the average annual impact on credit unions."
Matz, whose speech marked her first appearance since the board conserved three corporate credit unions and issued a new rule on the corporates, didn't use the occasion to make a new policy statement, as she often does at such venues. Instead, she expressed optimism that that the board's actions would enable the industry to turn the corner.