I don't usually do this, but I thought I'd share with you an email that my boss' boss (Fred Becker, NAFCU's CEO) sent to all NAFCU CEOs to let them know what we're doing on the corporate front. Here it is.
***
Dear NAFCU member,
I am writing to you this morning to provide an update on the ongoing efforts by NAFCU to secure a less costly alternative to your credit union than what would occur under the National Credit Union Administration’s (NCUA) recently announced Corporate Stabilization Program.
Since the announcement of the plan, we have been working steadfastly to ensure that you are provided with as much information as possible as to particular elements of NCUA’s plan and how it would impact your credit union. We have also been in constant contact with the NCUA, expressing our grave concerns and pushing for alternatives.
After thoroughly examining various alternatives, NAFCU is pursuing legislation that would expand access to and the purpose of NCUA’s Central Liquidity Facility (CLF). Specifically, the legislation would provide corporate credit unions access to the CLF while also expanding the use of the funds to meet credit unions’ capital needs. Simply stated, using the CLF to bolster corporate credit unions would allow the corporates to avoid the liquidation of underwater investments. Accordingly, the NCUSIF would not need $4.7 billion in reserves and the recapitalization of the fund and/or a premium assessment would no longer be necessary.
As part of the strategy to obtain this critical legislative change, I have formally requested the support of the NCUA Chairman Michael E. Fryzel, and the recently confirmed Secretary of the Department of Treasury, Timothy F. Geithner. I have spoken directly to NCUA Chairman Fryzel, Vice Chairman Hood, and Board Member Hyland and have asked for their support. I have also provided a copy of the letters to Secretary Geithner and Chairman Fryzel to Dan Mica, President and Chief Executive Officer of the Credit Union National Association (CUNA), and spoken to him directly. At this critical juncture it is imperative that the industry join together to move this legislation immediately forward.
As always, should you have any questions, please do not hesitate to contact me by telephone at (800) 336-4644 ext. 215, or by email at [email protected].
***
Here's a copy of the letter we sent to Chairman Fryzel, which details our proposed amendment to the FCU Act. The amendment would allow corporate access to the CLF for liquidity or capital needs. This could protect the NCUSIF from taking a beating, which means it could protect your credit union from taking a beating.
And that's a good thing.
Download Fryzel - Corp CU Stbl Plan
As always, stay tuned.
Comments