ALEXANDRIA, Va. – The NCUA Board is expected next week to extend the extraordinary regulatory forbearance that has allowed corporate credit unions to operate using their capital levels of November 2008, even though all but a handful of corporates are well below minimum capital requirements and some are operating with no regulatory capital.
The action would extend the waiver of Part 704 of the agency rules and regulations.
NCUA has allowed corporates to operate at the levels of capital they had before they were forced to deplete all of the capital they had invested in U.S. Central FCU, which they did over the past 12 months.
Also, the NCUA Board has set a special closed board meeting for this morning to discuss supervisory actions. Such emergency closed meetings are usually held on a Friday to take over a troubled credit union.
