NCUA Urges Post-Katrina Ease On CUCapital
WASHINGTON - (09/15/05) -- NCUA has called on the TreasuryDepartment to ease minimum capital standards for credit unions inthe Gulf Coast areas that were affected by Hurricane Katrina. NCUAChairman JoAnn Johnson said she raised the issue of a temporaryease on minimum capital, known as prompt corrective action, withTreasury Secretary John Snow, who is exploring similar forbearancefor bans and thrifts affected by the hurricane. "I brought this upwith Secretary Snow, and I also made a pitch for risk-basedcapital," Johnson told The Credit Union Journal Wednesday. Many ofthose credit unions, noted Johnson are going to need to use some oftheir capital to rebuild or finance repairs. Earlier in the day,representatives from both CUNA and NAFCU asked Congress for atemporary ease or waiving of PCA requirements for credit unions inhurricane-affected areas, as part of a financial assistancepackage.