Derivatives Fees Gain Bronx Cheer
ALEXANDRIA, Va. — The NCUA’s proposed derivatives rule includes a possible fee structure for credit unions applying for and using the authority that could discourage them, say those involved with the regulator’s pilot program. And one credit union chief financial officer said she won’t apply if the final rule includes the fee.
Denise Boutross McGlone, chief financial officer at the $2.4 billion Affinity FCU of Basking Ridge, N.J.,, has been using derivatives through the pilot to hedge against the interest rate risk presented by Affinity’s large 30-year fixed-rate mortgage portfolio. McGlone said she’s glad the NCUA proposed the rule, but said the fee structure suggested would be a deal breaker.