National Credit Union Administration Board member Rick Metsger warned that the bill is about to come due on taxi medallion loans.
In a speech to the Oregon Department of Financial Services CEO roundtable, Metsger stated that National Credit Union Share Insurance Fund (NCUSIF) reserves are likely to rise in the near future, due to much lower prices on New York City taxi medallion and a "continued increase in already high delinquency rates on medallion loans."
Metsger stated that NCUA knew of and warned about the problem associated taxi medallion loans for some times.
But Metsger blamed the pending increase in losses from taxi medallion loans on "a small number of credit unions that gambled on a market that was disrupted and a bubble that burst" and the Credit Union Membership Access Act, which limited the agency's ability to curb speculative taxi medallion loans.
Metsger commented that the reason why the agency is raising the equity ratio on the NCUSIF's normal operating level to 1.39 percent is to account for significant losses from taxi medallion loans and to avoid a sudden and significant increase in premiums.
Furthermore, Metsger defended the agency's risk-based capital requirements from credit union trade association attacks by stating that "situation with the taxi medallion credit unions ... is a prime example off why we need a strong risk-based capital system."
Read the press release.
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Hey Metzger!
ReplyDeleteThree little words from cu ceos.
Document of Resolution.
Three more. Do your job.
Try assessing us for the losses.
We'll have 3 more words for you.
Tough words for a one eyed fat man.
DeleteWant to be real tough, try these three words...
...mutual savings bank.
Get yourself a real regulator.
As many folks have said here and elsewhere.
ReplyDeleteThe merger of the two funds was a devious head fake.
McW, what’s your excuse?
Meanwhile, some credit unions are publicly telling their communities how they’ll invest their “rebate” in local charities.
What a joke.
Metsger comments in cu times today are sad.
ReplyDeleteHe actually attempts to portray that:
NCUA did nothing wrong in supervising taxi lenders.
“Warned” credit unions 3years ago about potential losses from taxis.
He’s a funny man.
When he and McW were discussing merging the insurance funds why didn’t they specifically discuss taxi loans?
Melrose is -5% net worth.
Where was CUNA on this?
Insurance dues and Cuna/nafcu dues...what’s in your wallet? Or, who’s in your wallet?
Chicago has big exposure to this taxi and cu implosion while NCUA simply let the money run, ready with a national bail-out for both businesses in Chicago, all in the shadow of NYC.
ReplyDeleteWhere was the former NCUA Chair from?
Where was the guy who appointed him from?
Where are McW and M from?
What exactly are you talking about?
DeleteWhat are “both businesses in Chicago?”
What is “all in the shadow of ny” mean?
The former NCUA chair is Matz who is a her not a him?
the taxi business and the credit union business.
Deletemedallion losses in ny are the press focus.
Fryzel. My mistake. A former, not the former.