ALEXANDRIA, Va. — Amid widespread opposition, the NCUA Board this morning voted amendments to its corporate credit union rule that eliminates the controversial provisions limiting credit unions to one corporate and encouraging corporates to assess charges for the corporate bailout on privately insured credit unions and CUSOs.
The watered down rule will require corporates to establish new internal control reporting; establish an enterprise-wide risk management committee; disclose certain CUSO compensation for dual employees with corporates; and allows corporates to charge reasonable one-time or periodic membership fees.
Credit unions overwhelmingly opposed the one corporate proposal during the public comment period, saying they should be allowed to shop among several corporates for the best and cheapest resources.
The proposal to allow corporates to assess "voluntary" corporate bailout charges on non-federally insured members of corporates, including privately insured credit unions and CUSOs, was also widely disparaged, with commenters saying privately insured credit unions are not part of the NCUA system, which is funding the bailout, and an assessment on CUSOs would be akin to double taxation because the CUSO's credit union owners are already paying for the corporate bailout.
NCUA Board member Michael Fryzel attributed the elimination of the two controversial proposals to the widespread opposition by credit unions. "We made every effort to ensure that we weren't implementing something that was harmful to the industry," he said.
