ALEXANDRIA, Va. – The expected consolidation and recapitalization of the corporate credit union system, hoped for by the end of 2009, is not expected to be enacted until the spring of 2010, at the earliest.
NCUA officials say they are still weighing threw more than 500 submissions under their advanced notice of proposed rulemaking on remaking the corporate system and don’t expect to formulate the comments into a proposed rule until early this fall. The proposed rule will also be issued for public comment before it is furnished into a final structure and put to a vote by the NCUA Board in the spring of next year.
The new structure is expected to include a consolidation of the current 27 corporate credit unions, new standards for capital, investments and services.
NCUA, which issued the ANPR is January in the face of a $1.2 billion loss by U.S. Central, had originally hoped to complete the restructuring of the corporate system–a process that was hastened by March’s failures of U.S. Central and WesCorp FCU-- by the end of the year.
