Compliance Blog

Posted by Sarah Loats

Happy Wednesday! Since the Compliance Guy is busy changing diapers and the Compliance Guy-in-training is busy at Compliance School, my days of avoiding the blog are officially over. Lucky for me, NCUA was fairly busy on Monday.

In addition to Monday's webcast, Chairman Fryzel issued a press release indicating that NCUA is exploring other options to enhance the Corporate Stabilization efforts. Specifically, Chairman Fryzel noted:

"Events continue to move swiftly, and I have directed NCUA staff to explore two new avenues to augment NCUA’s Corporate Stabilization efforts.  First, we have held preliminary discussions with Congress regarding the creation of a Corporate Stabilization mechanism, as an adjunct to the National Credit Union Share Insurance Fund (NCUSIF). This new mechanism would replenish the NCUSIF through an arrangement with the Treasury Department, while providing additional flexibility for credit unions to make their required contributions over a period of time. Specific details of the proposal will be available pending the Board’s review and decision at Thursday’s Board Meeting.

Second, I am evaluating the latest Treasury initiative to deal with troubled assets. This new ‘Public-Private Investment Program’ appears to hold some promise for corporate credit union holdings. NCUA is conducting a thorough review of the parameters of the Program, and if those details comport with relevant statutes and regulations we will utilize the Program in a way that affords NCUA more latitude in resolving problem assets."

The Treasury announced the Public-Private Investment Program on Monday.

NCUA also released 2 FAQs on Monday - on the PIMCO Credit Analysis and the conservatorship actions. You can find the press release here, which provides links to the FAQs.

Finally, NCUA noted on Monday that the CU SIP program has been sucessful.