Hot off the press. As you may recall, NCUA had a closed board meeting yesterday. Well, they were quite busy.
The National Credit Union Administration Board today approved a series of actions designed to enhance and support a corporate credit union system facing unprecedented strains on liquidity and capital due to extraordinary market disruptions and the current economic climate. Corporate credit unions provide investment and liquidity services to consumer-owned natural person credit unions. ...
Using all available resources to achieve these objectives, the NCUA Board approved the following:
- Guarantee uninsured shares at all corporate credit unions through February 2009, and establish a voluntary guarantee program for uninsured shares of all corporate credit union through December 31, 2010;
- Issue a $1 billion capital note to U.S. Central Corporate Federal Credit Union (U.S. Central);
- Issue an Advance Notice of Public Rulemaking (ANPR) on restructuring the corporate credit union system; and
- Declare a premium assessment to restore the National Credit Union Share Insurance Fund (NCUSIF) equity ratio to 1.30 percent, which will be collected in 2009.
Read the NCUA press release here. NCUA also issued Letter to Credit Union 09-CU-02 to explain all they did and plan to do. They also released the ANPR noted above.
Remember that an ANPR is an advance notice of public rulemaking. It isn't even a proposal. It is more of a "hey, what you y'all think about this" kind of deal. Using the feedback, NCUA may choose to craft a proposal somewhere down the line.
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