WASHINGTON-CUNA Corporate Task Force Chair Terry West said these are among the alternatives to NCUA's Corporate Stabilization Plan:
1. Central Liquidity Fund option: CUNA is pressing Congress to extend the CLF limit beyond the current $41 billion. "One thing we have asked for is could corporate CUs borrow directly from that fund and use that as capital," said Terry West.
2. The Spread Out The Assessment option: One plan calls for CUs to have five years to repay their corporate assessment, but CUNA is pressing for eight years.
3. The TARP Funding option: It's an issue of which CUs are strongly divided, noted West. CUNA's position now on TARP is that it's a "stop-gap" measure that should be a backup if ever needed.
4. Change the Accounting. West said CUNA has contacted the AICPA about accounting-related issues, noting he knows of three different opinions from auditors on how the current assessment should be handled if it's assessed. It expects AICPA to offer some clarity in next 10 days.
5. The U.S. Central Into Conservatorship NON-option. As NCUA awaits its portfolio assessment by Pimco, and as U.S. Central acknowledges an other-than-temporary impaired, or OTTI, loss of $1.2-billion, West said, "We cannot allow U.S. Central to go into conservatorship, as it would just cascade down through the corporate system."
