Before adjourning, Congress passed credit union legislation (S. 4036) requested by National Credit Union Administration (NCUA).
The bill includes three technical amendments. One measure will clarify the application of an accounting standard that enables the NCUA to provide capital assistance to troubled credit unions, thereby encouraging mergers with healthy credit unions.
The other amendments will allow the NCUA to assess premiums for expenditures related to the Temporary Corporate Credit Union Stabilization Fund without first borrowing from Treasury, and clarify that the National Credit Union Share Insurance Fund equity ratio is based solely on its own unconsolidated financial statements.
The bill will also require the Government Accountability Office (GAO) to study the NCUA’s supervision of corporate credit unions and implementation of prompt corrective action. The legislation mandates that the GAO determine the reasons for the corporate credit union failures, and also evaluate the NCUA’s response to those failures. The measure also requires the GAO to evaluate the NCUA’s use of prompt corrective action with corporate credit unions and natural person credit unions and the agency's implementation of recommendations contained in previous reports from its own inspector general financial crisis. The completed report will go to the Senate Banking Committee, the House Financial Services Committee and the Financial Stability Oversight Council.
What is this the sixth GAO study of credit unions over the past 17 years? How many studies of banks and their regulators over the same period? (one, maybe.) All the billions lost by banks and no examination of whether this bogus plan of "prompt corrective action" actually works in banks or credit unions? Please, Dr. Leggett, let us together ask for a complete and exhaustive look at PCA to see if it makes sense!!!
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