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

The agency's weekly corporate credit union update included a comment from Chairman Michael Fryzel that said because corporate credit union functions are tied to capital levels, the NCUA Board "has issued an order that will permit corporate credit unions to use the capital level as reported on their November 30, 2008, NCUA 5310 Call Report, for purposes of determining regulatory compliance with capital-based requirements and regulations in the corporate rule."

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

"We believe this will allow corporate credit unions to continue to meet members' needs while also ensuring corporates do not take additional undue risk," Fryzel said.