SAN ANTONIO-In her first public remarks since NCUA unveiled its revised corporate rules, Chairman Debbie Matz told state regulators they should feel comfortable with a new investment option available to credit unions.
That option, NCUA Guaranteed Notes, represent the corporate legacy assets that NCUA is securitizing and, in conjunction with Barclays, selling on the market. A prospectus is expected to be available around Oct. 12.
Matz, speaking to NASCUS annual meeting, clarified for one state regulator who said more information would be needed by noting, "these are federally insured securities. So they are really considered zero risk. It's like credit unions purchasing Treasuries."
Matz' remarks largely followed the presentation made by NCUA as part of its town hall web seminar one week earlier announcing the revised corporate plan and the conservatorship of three more coprorates. "We've taken a very deliberative approach with three distinct phases: stabilize system liquidity, resolve problem credit unions, and reform corporate system," Matz said.
Matz said the NCUA plan ultimately will save credit unions "billions of dollars. In the coming weeks we will fund the legacy assets and in the coming months we will over see the transition. We can assure you this type of crisis will never happen again as the result of our newly strengthened corporate rule. NASCUS was instrumental in recommending improvements, which we adopted."
