This isn't a rehashing of the corporate credit unions' problems or legacy assets or placing blame. We'll learn about the agency's plans for the legacy assets soon enough (though it has been some time coming). This is about the discovery of next steps.
The NCUA will soon reveal April's 1% capitalization deposit adjustment, expected along with the agency's March financial statements.
NCUA Director of Public and Congressional Affairs John McKechnie said the regulator is sensitive to how NCUSIF deposit premiums and special assessments could "exacerbate adverse trends" for credit unions.
Stuart Perlitsh said we build capital thru earnings (Feb. 24 Letter), while Tom Dorety thinks we need to build capital through some new alternative capital (March 10 Letter).
As credit union management and boards learn more about the amount of toxic assets in corporate and natural person credit unions, their conclusion about assessments changes from "something we have to live with" to "we can't live with that."
The credit union merger scene appears to be in a funk as 2010 gets under way.
The credit union culture is not only too big to fail-it's too important to fail.
In an unusual session scheduled for last Friday, the NCUA Board was slated to hear a report on the financial health of the NCUSIF.
Early January is typically a slow news time for us as the credit union industry awakes from its holiday slumber, but that is certainly not the case this year.