February 03, 2014

Berger, Hunt reiterate capital proposal concerns

Feb. 3, 2014 – NAFCU President and CEO Dan Berger told the Credit Union Journal Friday of the association's continued skepticism that NCUA's proposed regulation on capital will really account for systemic risk.

The proposed rule, released Jan. 23, would require some 200 credit unions to increase their capital if it were in place today. Speaking to CU Journal, Berger said it looks for now as if credit unions would more quickly run afoul of the rule if adopted as proposed.

Berger wrote NCUA last month to reiterate the association's concerns, noting that some of the risk weights may assume more risk in some investments than really exists.

The article also quotes Carrie Hunt, the association's senior vice president of government affairs and general counsel. "We have very detailed comments," she is quoted saying. "So we already have a good idea of the issues credit unions have with the new rule – and there are many."