Federal accounting rules, deteriorating securities and anincreasing corporate bailout price tag are hurdles the NCUA willhave to overcome in its quest to rid corporates of toxicinvestments.
Banking regulators didn't face these challenges when they issued$1.8 billion in securities March 5, and according to those familiarwith both Wall Street and credit unions, they are preventing theNCUA from simply adopting the same structure as the FDIC.
The FDIC's revenue-generating bonds are backed bymortgage-backed securities it inherited from seven failed banks.The proceeds will be used to pay creditors, including the FDIC'sshare insurance fund.
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