WASHINGTON – NCUA Chairman Michael E. Fryzel today asked Congress for money to help his agency set up a program for the agency to buy troubled assets from credit unions.
In a letter to key senators and representatives, he noted that since the Treasury Department is not using Troubled Asset Relief Program to buy assets, NCUA should be given the resources to do so.
"Recent credit union examination data indicates that a TARP-like program, which creates a market for certain distressed assets, would be of significant and tangible benefit ton credit unions," he wrote.
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Fryzel did not put a dollar amount on his request.
He also told lawmakers about the agency's efforts to help people hurt by the economic crisis, including the $2 billion mortgage relief program (financed by the Central Liquidity Fund) that he unveiled yesterday.
Although Treasury Secretary Henry Paulson originally told Congress that TARP money would be used to buy illiquid assets, last week he said the funds would only be used to buy preferred shares of financial institutions.
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