Regulatory & Compliance

WASHINGTON - CUNA President Dan Mica today made another pitch for lifting the cap on member business loans, but Sen. Christopher Dodd said he wants to proceed with caution because of concerns about regulatory oversight.

For the time being, several CUSOs with ties to WesCorp said it's business as usual days after NCUA placed one of the country's largest corporates into conservatorship.

A debate is brewing regarding the necessity to take U.S. Central Federal Credit Union and Western Corporate Federal Credit Union under conservatorship.

NCUA Executive Director David Marquis dropped a bombshell on members of Western Corporate Federal Credit Union yesterday afternoon: their paid-in capital and member capital is gone.

Frank Pollack, the president/CEO of the $13 billon Pentagon Federal Credit Union, urged the NCUA Tuesday to work toward lengthening the payment schedule over eight years to re-fund the NCUSIF.

CUNA President Dan Mica told a Senate panel today that the credit union movement "would prefer some help'' from the government help in the form of loans to help spread out the cost of losses to the NCUSIF.

Private investors and the government would work together to buy bad assets to help financial institutions get back on their feet, under a plan unveiled today by Treasury Secretary Timothy Geithner.

NCUA Chairman Michael E. Fryzel said today that his agency is putting together a proposal would create a new mechanism to replenish the NCUSIF.