CU Resources for NCUA Corporate Stabilization Plan (Monitor: February 2, 2009)
The MCUL has compiled resources related to NCUA's announcement of their "Corporate Stabilization Program" that will inject $1 billion of new capital into U.S. Central FCU and guarantee $80 billion in uninsured deposits at the nation’s 26 corporate credit unions and U.S. Central. These resources are housed on a new Web page under Information Services, and includes links to press releases from CUNA and NCUA, talking points that explain further details of NCUA's plan, and other updates as they become available.
In a statement from CUNA the morning of Jan. 30, the association disagreed with NCUA's course of action and expressed desire to find an alternate plan in order to remove some of the pressure the move would put on credit unions.
"While CUNA does not welcome this plan by NCUA forcing credit unions to pay such a high price, we do understand the need for the agency to act," said CUNA President/CEO Dan Mica. "However, we also believe the agency must consider other solutions to mitigate the costs on credit unions during these difficult economic times."
MCUL President/CEO David Adams said the MCUL agrees with CUNA that other options should be explored.
"While we are still learning further details of exactly how this will impact credit unions in Michigan, we agree with CUNA that NCUA should examine additional possibilities," Adams said. "The ability of Michigan credit unions to continue to thrive and serve their members is our highest priority in this situation, so we will work with both agencies to see that credit unions' best interests are kept in mind."
Click here to access the MCUL's resources on the NCUA plan.