Tuesday, April 10, 2012

Cost of Resolutions

Unlike FDIC, NCUA does not publish the estimated cost to the insurance fund at the time a credit union is placed into conservatorship or receivership.

Presumably, NCUA has analyzed various cost estimates for different courses of action to the National Credit Union Share Insurance Fund (NCUSIF), as it determines which approach will result in the least cost to the NCUSIF.

In its February 23 letter to the Texas Bankers Association about the conservatorship of Texans Credit Union, this seems to be the case. NCUA Chairman Matz wrote:

"NCUA's goal is to achieve the least-cost resolution ... We carefully evaluated all options before charting this course."


Since NCUA has already done these calculations, as a matter of transparency it should include the estimated cost to the NCUSIF in the press release when it places a credit union into receivership or conservatorship.
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2 comments:

  1. AnonymousApril 10, 2012 at 4:13 PM

    Good idea, but the NCUA will never do this.

    ReplyDelete
  2. AnonymousApril 10, 2012 at 8:26 PM

    The 3 village idiots represent the greatest cost to the NCUA & the NCUSIF.

    ReplyDelete

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