CUNA General Counsel Eric Richard said today the association won't file a suit challenging NCUA's decision to place U.S. Central Federal Corporate Credit Union and Western Federal Corporate Credit Union into conservatorship but wouldn't rule out legal action in the future if necessary.
He said NCUA's legislative proposal to create a stabilization fund goes a long way towards working to resolving both the problems facing the corporate credit unions and enabling natural person credit unions to spread out premium payments over several years.
"You don't want to sue your regulator. We hope things can be worked out cordially."
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Under federal law, a party has 10 days to file a legal challenge to a decision placing a credit union into conservatorship. Today is the deadline for such an action since the NCUA took the action on March 20.
CUNA Deputy General Counsel Mary Mitchell Dunn said they will work with NAFCU to see if they can persuade NCUA to expand its proposal to allow the Central Liquidity Facility to lend money to corporate credit unions directly and to raise NCUA's borrowing authority above the $6 billion the agency has requested and the House has approved.
Richards said CUNA is still extremely interested in finding out what financial information the NCUA used as a basis for its decision on U.S. Central and Wescorp. On Friday night, it filed a request under the Freedom of Information Act seeking some of the data from and methodology of the PIMCO report that NCUA used as one of the factors in making its decision about the two corporate credit unions.
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