Dan Berger, the chief executive of the National Association of Federally-Insured Credit Unions (NAFCU), is arguing that U.S. economy could be in a recession as soon as the end of 2019.
Appearing on Hill.TV's "Rising", Mr. Berger stated that " [t]he recession could hit end of 2019 — maybe the first quarter of 2020," if a very large bank was to fail.
As background, NAFCU is advocating for the reinstatement of the Glass-Steagall Act, which separated commercial banking from investment banking.
Given Mr. Berger's dire prediction of an imminent recession, the National Credit Union Administration should immediately assess premiums on all federally insured credit unions to ensure that the National Credit Union Share Insurance Fund has adequate resources to resolve credit union failures.
Also by preemptively assessing premiums, this would limit any spike in premium assessments at the very moment that credit unions would have difficulty affording these higher assessments.
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Fascinating.
ReplyDeleteBerger, he of the inflated benefit of cu membership to consumers pronouncements off shaky research that only nafcu sees. Now predicting recession while discussing a topic he clearly does not understand...since, the repeal of glass Steagall has NOTHING to do with the bubble.
Ambulance chasing for fee relevance.
As far as the insurance fund goes, credit unions are so far behind the bank industry in true insurance fund solvency that it’s now dereliction of duty by congress.
Disagree with your conclusion dr. Leggett. The first thing that needs to be done is what NCUA proposed to congress a few years ago. NCUSIF should be calculated the same way FDIC does it.
We just did a board meeting where s consultant showed us the comparison.
What’s the hold up?
It would require legislation to change how the NCUSIF is calculated.
Deletewhy would you have that presentation at a board meeting? Don't you have better things to do?
DeleteWhy would you think that wa the main thrust of the consultant s presentation?
DeleteIt was a small part of an overall.
More important question is why aren’t you asking what it’s about, given it’s a potential major capital event?