HIGHTSTOWN, N.J. — A survey of its affiliated credit unions by the New Jersey Credit Union League regarding corporate credit unions and NCUA's Stabilization Plan found:
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- 38% said NCUA's plan would be more acceptable if they knew it would result in corporate restructuring and new safeguards to prevent a repeat occurrence of the system's losses.
- 27.5% strongly favor credit unions accepting Troubled Assets Relief Program funds, while 23.5% were strongly against it.
- Nearly 40% felt strongly that taking federal funds would jeopardize the CU tax exemption.
- 71.2% favor allowing NCUA to bypass Generally Accepted Accounting Principles and pull capital directly from undivided earnings or regular reserves so this event doesn't impact current performance.
- 58.8% said there wasn't enough capital in natural-person credit unions to absorb corporate losses and fund future premium assessments.
As for corporates themselves:
- 77% said they still have confidence in their corporates.
- Respondents were split nearly 50/50 on the potential of a corporate system broken into two charters: one for corporates that handle payment processing and one for those that handle investments.
- 58.8% favor limiting corporates' FOMs to defined geographic regions.
- 58.3% did not believe corporates' primary role going forward should be payments processing.
- 60% said they still will look to corporates for investments after this or any other NCUA plan is complete.
- 55.1% favor corporate consolidation, vs. 44.9% who oppose it.
- 58.7% said there is a future role for U.S. Central.
- 72.3% do not want corporates regulated by the Treasury Dept.
