SAN ANTONIO — NCUA should have a prospectus available around Oct. 12 on its new NCUA Guaranteed Notes, NCUA Chairman Debbie Matz said this morning.
In her first public remarks since NCUA unveiled its new corporate plan, Matz said the agency supports natural-person CUs investing in the NGNs when they become available. Those notes represent the corporate legacy assets that NCUA is securitizing and, in conjunction with Barclays, selling on the market.
"We would like to see credit unions take a look at them and decide if they are in the best interests of the credit union," said Matz before NASCUS‚ annual meeting. We think these will be very good investments."
Matz 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."
Separately, in response to the recent headlines describing NCUA's plan as a "bailout" of corporates, Matz said, "this is not a government bailout.
Taxpayers have not lost a penny. The credit union industry will repay the entire cost of this with interest."
