The NCUA should be more forthcoming about the terms of its deal with the Newport Beach, Calif.-based Pacific Investment Management Co., which it hired to determine the value of corporate credit union investments, said NAFCU President Fred Becker.
"Not only are credit unions paying for this study, they're paying for whatever losses PIMCO determines, so why not provide transparency," he said of the NCUA.
NAFCU members don't have a problem with the fact that PIMCO was selected to perform the portfolio reviews, Becker said, but they should be allowed to review the end result, and the methods used to arrive at those figures.
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"The value of these securities is somewhat subjective. It's really as much art as science," he said. "Ultimately, you really don't know for sure if securities are going to continue to pay, and a lot of it depends upon the economy and what will happen in the future."
NCUA Chairman Michael Fryzel previously declined to reveal the terms of the PIMCO deal, saying that it was confidential.
"My members are very interested in this and requested help," Becker said. "I think the agency owes transparency to its stakeholders on this issue."
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