The NCUA expects so many corporate credit unions to recordcapital losses their March 31 financials and restated December 31,2008 financials, its suspended safety and soundness regulations inanticipation.

The agency's weekly corporate credit union update included acomment from Chairman Michael Fryzel that said because corporatecredit union functions are tied to capital levels, the NCUA Board"has issued an order that will permit corporate credit unions touse the capital level as reported on their November 30, 2008, NCUA5310 Call Report, for purposes of determining regulatory compliancewith capital-based requirements and regulations in the corporaterule."

However, Fryzel continued, the office of corporate credit unionshas been delegated the authority to restrict or modify the waiverfor specific corporates based on safety and soundness.