NCUA officials carefully tempered hopes for alternative capital at yesterday's San Diego Town Hall meeting, saying while there are signs the balance sheet band aid might come to pass, significant obstacles still remain.
Matz said she is anticipating reading a joint CUNA/NAFCU recommendation on alternative capital, and said she is "personally not opposed to it." She also commended NASCUS for their work on the topic.
Board member Gigi Hyland said she expects to present her white paper on the topic to the NCUA board in December. While Hyland said she supports alternative capital, she stressed that any potential solution must qualify as capital under GAAP accounting rules, and that is proving to be a challenge.
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California Credit Union League CEO Bill Cheney commented that his organization is dedicated to assisting the NCUA in the effort, and will work with the regulator to consider new ideas. Matz thanked Cheney for his support, and said the NCUA is "open to looking at all options."
NCUA Director of Congressional and Public Affairs John McKechnie called the current Congress "the best environment I've seen in a long time" for passing alternative capital legislation.
"However, even if we go to the Hill with a unified position on alternative capital, there's no guarantee," he said.
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