Lee Butke, president/CEO of the $4.2 billion Corporate One Federal Credit Union, said the question of raising paid-in capital is a serious one that deserves serious debate. The verdict in his Columbus, Ohio board room? Too risky, Butke said.
"Unlike in past PIC issuances, we'd be unable to express clarity about the risk involved," he said. "Obviously there's the potential for additional U.S. Central write downs, which thankfully is fairly modest for us, but there's also the risk of loss on any bonds or investments one holds, and if you hold any non-agency mortgage backed securities at all, there's risk."
Butke also said he's not willing to generate capital until the NCUA has had a chance to determine new corporate regulations.
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