NCUA Approves New InvestmentOption

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ALEXANDRIA, Va. - (06/23/06) -- The NCUA Board approved in closedsession Thursday a new mutual fund for credit unions that willconsist of several investments previously impermissible. The fund,which was approved on a pilot basis, will be managed by BearStearns & Co. and will include a variety of securities, likefinancial derivatives, stripped mortgage backed securities andshort-sales of Treasuries and agency securities, which are allowedunder the Federal CU Act but are not currently permitted by NCUA, asource familiar with Board's action told The Credit Union Journal.While all of the securities will not necessarily be included in thenew fund, Bear Stearns wants to maintain enough flexibility toinclude one or more of them. NCUA will public the standards for thenew fund on its website.

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