NCUA Chairman Michael E. Fryzel said today that his agency is putting together a proposal would create a new mechanism to replenish the NCUSIF.
He said in a statement that the agency has spoken with lawmakers and their staffs about creating a "corporate stabilization mechanism" that would supplement the NCUSIF. It would replenish the fund through an arrangement with the Treasury Department and give credit unions more time to make additional payments to replenish the fund.
He said the board will review and vote on the proposal at its executive session meeting on Thursday.
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Fryzel also said that the Obama administration's proposal for a public-private partnership to buy troubled assets for financial institutions "appears to hold some promise for corporate credit union holdings."
He said the agency would review the program and determine if the regulations and statutes as written would allow credit unions to participate.
Under the program announced today by Treasury Secretary Timothy Geithner, the
government will offer low-interest loans to private funds to buy these assets-loans and mortgage-backed securities. Private equity firms and hedge funds are likely to be the main purchasers.
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