The "very severe earnings hit" on credit unions by NCUA'scorporate takeovers should now force the Treasury and Congress tocome up with a CU aid package, the president/CEO of The Golden l CUof Sacramento said Monday.

"It's no longer a choice but an absolutely necessity" thatTreasury and Congress craft a financial relief program," said TerryHalleck, expressing deep disappointment" at NCUA's bold action,which she described as "drastic" and injurious to CUs, particularlyin her own state as well as in Florida, Nevada and Arizona. Thecost to The Golden 1 based on the two assessment hits will resultin a $76 million loss of capital, she said.

Echoing a more optimistic tone on Treasury actions was DavidAdams, the president/CEO of the Michigan Credit Union League, whosaid the Treasury's announcement of using public and private fundstop buy up toxic mortgage-backed securities "would be a verypositive development if credit unions can gain access to thatprogram." Also a positive development, he said, is new FASBreporting on market-to-market accounting, which also would providerelief.

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