NCUA Board Members Debbie Matz and Michael Fryzel said they are eagerly anticipating comments on a rule that would grant new investment authorities but could set a pay-to-play precedent that concerns trade associations.
The proposed rule, introduced during the board's monthly board meeting May 16, would grant qualifying credit unions the ability to use derivative swaps and caps to hedge against interest rate risk.
However, because of the cost to the NCUA–as high as $16 million in temporary staffing costs over the first three years and up to $4 million in the years that follow–the final rule could also include an application fee or an on-going supervision fee to be paid only by those credit unions applying for and utilizing the authority.
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