What NCUA Has Resolved For 2011
ALEXANDRIA, Va. — NCUA Chairman Debbie Matz said the following are her New Year's resolutions:
• No more multiple documents of resolution for troubled CUs. "NCUA would issue a document resolution, and then it would be reissued and reissued again. No more. The next step is a Letter of Understanding and Agreement, period."
• Continue to allow natural-person CUs to decide for themselves how they want to get their correspondent banking addressed. NCUA has put together educational materials for board members to help them make an informed decision.
• Propose a rule on interest rate risk and concentration risk.
• Take a hard look at member business loan participations. "I'm concerned that there hasn't been a whole lot of due-diligence in this area," Matz commented.
• Take a hard look at CUSOs. "I'm concerned because CUSOs are taking on a lot of risk, and that does spill over to the credit unions that own the CUSOs."
• Seek authorization to regulate CU vendors (including CUSOs). "We're the only financial regulator that doesn't have authority to regulate vendors," she said.
• Seek an extension of the statute of limitations on corporate lawsuits. This is not to pursue former board members, but to go after the entities that added to the corporates' problems, such as brokers and ratings agencies.