If current trends hold, the NCUA isn’t likely to have to levy a premium to shore up the NCUSIF this year, and if there is sufficient participation in the prepayment plan, assessments to repay the corporate credit union rescue could be reduced.
ALEXANDRIA, Va. — Credit unions could prepay between $10,000 and 36 basis points of insured shares toward their assessments to pay the costs of the rescue of corporate credit unions under a proposal announced at the May 19 NCUA board meeting.
The financial statements of the NCUA’s four main funds are presented fairly, but there are serious difficulties in the agency’s financial accounting, according to an independent audit released on May 16.
ALEXANDRIA, Va. — Credit unions could prepay between $10,000 and 36 basis points of insured shares toward their assessments to pay the costs of the rescue of corporate credit unions, the NCUA proposed Thursday.
If credit unions were subject to income taxes, they would lose a key part of what makes them unique, but experts are divided as to whether it would create a stampede of bank conversions.
NCUA Inspector General says poor investment decisions by executives and volunteers and inadequate oversight by the NCUA were the key factors in the heavy losses at Members United Corporate Credit Union.
Golden parachute ban, advertising rules and insurance fund prepay options all on agenday for next week's NCUA board meeting.
An NCUA proposal to encourage non-federally insured credit unions to pay into the Temporary Corporate Credit Union Stabilization Fund violates a federal statute banning extortion by government employees, according to American Share Insurance.
Restricting CUs to belonging to one corporate is "contrary to the principle that member-owner natural person credit unions determine the future of their corporates and the corporate system as a whole," NAFCU wrote in its comment letter to the NCUA.
The NCUA's proposal to encourage corporate credit unions to charge fees to non-federally insured entities is contrary to the intentions of the law and the notion that such payments would be voluntary is "disingenuous."