WASHINGTON-The House Financial Services Committee will hold hearings this week on the causes of the problems in the corporate credit union system, particularly the failures of U.S. Central FCU and WesCorp FCU and how the problems will affect the 7,800 natural person credit unions.
NCUA Chairman Michael Fryzel is scheduled to testify, as well as representatives of CUNA, NAFCU and NASCUS, at the hearings, which are being held by the financial institutions subcommittee of the Financial Services Committee.
The hearings come as the panel is drafting legislation to match the bill that recently passed the Senate, which would allow credit unions to stretch out the costs of the corporate bailout for as long as eight years and provide as much as $30 billion of emergency funding for NCUA to stem a systemic crisis.
Lawmakers are expected to probe the reasons for the corporate failures, NCUA's role in overseeing the failed institutions, and how to limit the impact of the $5.9 billion cost of the corporate bailout.
