The Quebec Financial Markets Authority has designated Canada's largest credit union, Desjardins Group, as a domestic significantly important financial institution (SIFI).
Should FSOC designate Navy Federal Credit Union as a SIFI, if Desjardins Group is designated a SIFI?
Here is the press release.
I might be math challenged here, but Desjardins is 193B in deposits in a much smaller country vs Navy Fed at 54B in a huge market.
ReplyDeleteSo, they may be a big fish in a small pind.
Any bank holding company over $50 billion is a SIFI.
ReplyDeleteFrom an NCUA Share Insurance Fund perspective, Navy is certainly "too big to fail". The NCUA has adjusted its exam resources to address that. But when compared to the likes of Bank of America, Citi, Wells Fargo, etc, - AKA the systemic risk to the US financial system - Navy is small potatoes. If the NCUA can borrow from the Treasury to stabilize the fund following the corporate CU failures, it could handle Navy losses should it fail.
ReplyDeleteMoral hazard, not certainty is our cu board's thought with Navy. If they fail, they 'own' the NCUA and its open-access to our member's capital; no member vote required.
DeleteThe NCUA does not have any money. All of it comes from the hard work of our employees who's families are now doing without as the NCUA chartered ccu's losses are replaced with our cu's money.
Cu Times website does not accept anonymous comments. In these cu times, it should.
Good points.
DeleteAnd cu times should allow anonymous comments. Understand the moral high ground they're trying to take but it lacks the real world reality that many informed stakeholders are by policy, not permitted to blog.
Easy for you to say.
ReplyDeleteNCUA borrows from us treasury...what, like that's ok?
As if there is no cost to the taxpayer?
Who do you think is on the hook to make the NGN investors whole...bill Cheney or Bucky?
The us taxpayer.
What's more, who do you think is on the hook for NGN and CCU losses and navy should she fail?
Credit union members thru assessments.
Always fun to see someone so cavalier with someone else's money.
Navy has roughly 5B on 53B in assets. Other credit unions are on the hook for the losses that Navy' s capital doesn't cover.
Here's what you should do ace reporter....
Ask chip Filson what he's doing with his crowd sourcing project....where are all the losses on the corp bonds?
He's posting everything but losses. Why?
Many of us are discussing why that is, given the same screen on a Bloomberg terminal that shows principal pay down also shows losses. So why isn't the "crowd" showing losses?
In the meantime, I'm glad to know that Navy has real professional managers running the ship versus the rank amateurs that ran corporate credit unions...which were also SIFI...which the losses will eventually show.