WASHINGTON – In its analysis of NCUA’s new rules for corporates, CUNA said it is most concerned with the costs of dealing with so-called “legacy assets” and the resulting impact on credit unions, according to Mary Dunn, head of regulatory compliance.
“There is a lot of concern that in 2011 and 2012 there is potential for somewhat higher assessments for the stabilization fund. It is an issue we will be monitoring,” she said.
Overall, CUNA sees the rule as being “more positive than not,” as it now outlines a “path toward resolution of a problem that has been hanging over the credit union system since September 2008.”
Dunn acknowledged some surprises in the new rules from CUNA’s perspective, including a willingness by the regulatory agency to make changes in response to issues raised earlier by the trade groups, including rules related to corporate governance and retained earnings requirements. “It will be important to allow corporates flexibility in terms of what counts for capital beyond retained earnings, if they are showing efforts to meet requirements . . . In general we did see some positive movement from NCUA, wanting to impose a rule that would correct past problems and position corporates to deal with future problems.”
