e-Weekly
July 1, 2009
NCUA – Letter to Credit Unions 09-CU-14 – June 2009
The League (Association) has prepared a brief summary of Corporate Stabilization Fund Implementation accounting. It appears below:
Capitalization Deposit - .69%
- The entry is not a reversal
- It is Recapitalizing the NCUSIF Deposit (Asset Account)
- Debit NCUSIF Deposit and Credit Income
NCUSIF Premium Estimate - .30%
- Calculate .15% of insured shares ($250,000 per account)
- This amount should remain in the contingent liability account for the premium assessment
- Reduce the liability account by the difference
- Debit the Liability and Credit Expense
- As a reminder in adjusting your estimate, the reporting period to determine the insured shares differs according to asset size:
- Assets less than $50M – insured shares at 12/31/2008
- Assets equal to or greater than $50M – insured shares at 6/30/2009
In the June 24, 2009 NCUA webinar, NCUA officials stated that these adjustments do not change regulatory reporting for past quarters and credit unions should not revise past quarter’s Call Reports.
If a credit union has any questions regarding accounting entries, they should contact their independent accountant.
Congress will resume reg reform debate after July 4 break
Following the Independence Day district work period, Congress is expected to resume its work on financial regulatory restructuring with House Financial Services Committee hearings on the role of the Federal Reserve, derivatives, and general testimony from financiers and leading academics tentatively scheduled for the coming weeks. The committee has not yet published witness lists for these hearings.
The committee recently began discussion of the regulatory reforms, with Troubled Asset Relief Program oversight panel chair Elizabeth Warren saying that the creation of the proposed consumer financial protection agency would undeniably "help fix the broken credit market."
During the hearing, Warren spoke in favor of so-called "plain vanilla" financial products and disclosures that could ultimately result in cheaper compliance costs for lenders and fewer oversight responsibilities for regulators.
It is widely reported that U.S. Treasury Secretary Timothy Geithner could soon release further details on a proposed consumer protection agency.
Congress also held hearings on integrating improvements to financial literacy and education into the larger financial regulatory reform package.
House Financial Services Chair Representative Barney Frank (D-Mass.) said that the committee would continue to discuss consumer protections following the district work period, adding that related legislation should be marked up in late July.
While Frank said that the final regulatory reform legislation would take the form of one all-encompassing bill, each piece of that legislation will be discussed and marked up separately by his committee.
Sprint/Nextel Member Discount Program Announced
The Massachusetts Credit Union League (NH or RI) has joined with the Michigan Credit Union League to bring their highly successful Sprint Nextel Credit Union Member discount program to the Bay State (Granite or Ocean State). This win-win program provides significant savings to credit union members that choose Sprint/Nextel for wireless phone service while providing a substantial income stream to the credit union for promoting the service to their members.
The program merely requires credit unions to engage in some basic awareness advertising efforts such as sending a marketing piece out with statements once a year, displaying some point of sale material in the credit union, inserting ads in the credit union newsletter twice per year and incorporating a link/banner into the credit union website.
For more information about this program, please contact Dean Martino at dmartino@cucenter.org or 1-800-842-1242.
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