Archive October 2009

More than 200 representatives from credit unions, corporate credit unions, state leagues, and associations participated in the NCUA Town Hall meeting at National Harbor outside Washington, DC, on Wednesday, September 30, 2009. NCUA Chairman Debbie Matz, board members Michael Fryzel and Gigi Hyland, Director of the Office of Corporate Credit Unions Scott Hunt, Deputy Executive Director Larry Fazio, and General Counsel Bob Fennel responded to questions and comments during this second of three scheduled meetings.Read More

This week’s announcement that the Iowa Credit Union League is seeking to buy a bank to provide correspondent and credit card processing services to replace the Iowa Corporate Credit Union triggered the following email chain:

First Message to group:
Call me crazy, but this isn’t a bad idea.

First Responder:

I agree, in the short term, but in the end if we are going to create a cooperative credit union alternative serving organizations that require capital investments, why not keep them in the system?Read More

For months, credit union leaders, NASCUS and CUNA have been trying to create a consensus that would support legislation to provide capital alternatives for credit unions.  Friday CUNA and NAFCU announced they were in agreement on a proposal to send to NCUA.  However important this option will be in the evolution of the credit union system, it is not the most important capital priority for NCUA or the credit union system.Read More

In an October 14, 2009, presentation to the Senate Banking Subcommittee on Financial Institutions, NCUA missed a chance to present the extraordinary results credit unions have achieved during the worst financial crisis of a generation.

The hearing on the state of the banking industry began as Congress is also taking up bills to revamp the regulatory structure. As Senator Tim Johnson, subcommittee chairman stated at the outset: “I don’t think we can do that (reform) without a clear understanding of what is happening with the sector.”Read More

Leaders of all the organizations within the credit union system are stewards of a mutually endowed legacy.   That legacy includes financial and physical resources, but it also includes the values and promises to each other that were the basis for accumulating the resources in the first place.

Cooperatives depend on this ability to work together for common interest.   If one participant in the system becomes ineffective or dysfunctional then all of the other participants will suffer as well.  This interdependence is at the heart of the cooperative success.Read More

Watch Gigi Hyland of the NCUA comment on the future of the corporate credit union system from the NCUA Town Hall meeting near Washington, DC. She speaks about the “mutuality” and “connectivity” of the credit union cooperative system and how that relates to the upcoming corporate rule changes and the NCUSIF.Read More

Bob Fenner, General Counsel for the NCUA, discusses the proposed new regulations of corporate credit unions during the Virtual Town Hall webcast:Read More

In case you missed the WesCorp financial performance webcast
on October 29, 2009, here’s a brief clip about the timeframe for
recapitalizing WesCorp.  The question is, “When are we as WesCorp
members going to be required to recapitalize WesCorp?”Read More

A brief video clip from the WesCorp financial performance webcast on October 29, 2009. The topic is OTTI and losses. The question is:

To date you have actual losses of $27 Million in the securities portfolio, but you’ve written off over $6 Billion dollars in OTTI. This means that you’re expecting to eventually have 100% of OTTI become actual loss. Is this correct?  And, what is the timeframe for this to happen?Read More