e-Weekly
October 14, 2009
CUNA moves forward on alternate capital proposal
The Credit Union National Association (CUNA) is moving forward with a proposal to the National Credit Union Administration (NCUA) on additional capital for credit unions as a result of an agreement with the National Association of Federal Credit Unions (NAFCU). Under the proposal, credit unions would be allowed to obtain alternative capital from their members and limited other sources, according to CUNA President/CEO Dan Mica.
Mica said recently, "This proposal has potential for giving credit unions access to additional strength to help them weather economic downturns and other strains on their capital base. It is the result of careful consideration that began with the CUNA board meeting last month, and subsequent discussions with NAFCU."
Mica added that the proposal will soon be forwarded to NCUA for its review and concurrence. "With CUNA and NAFCU now in agreement, CUNA strongly believes that the agency has an opportunity to act with Congress in this current environment," CUNA's leader said. He noted that CUNA will also be working with the National Association of State Credit Union Supervisors on the proposal.
The proposal would allow credit unions to accept and count as capital funding from such sources as:
- Members of the credit union;
- Sponsors and member select employee groups of credit unions; and
- Assistance provided to credit unions by government in limited circumstances (such as Section 208 assistance).
In each of these cases, the additional capital would not be federally insured and could pay a higher return on interest. The additional capital would also be subordinated to other claims against the credit union.
Members Insurance Agency to Hold 5th Annual MemberClose® Users Group Meeting
Members Insurance Agency is pleased to announce that the 5th Annual Users Group meeting for MemberClose® will be held on Tuesday, November 10th at the Doubletree Hotel in Milford, MA. Today, there are well over 100 credit unions from 13 states that use the MemberClose® program.
The program will provide a detailed look at the many tools that are part of MemberClose® today along with those that are planned for the near future. One new element that will be featured is the MemberClose® Lending program that provides a virtual mortgage department at no cost to your credit union.
Sunday NY Times: Mica urges ‘don’t be fooled’ on interchange
In an op-ed published in the Sunday edition (10/11/09) of The New York Times, Credit Union National Association (CUNA) President/CEO Dan Mica urged legislators "not to be fooled" into passing "legislation that hurts one of the most important building blocks of our economy at a time when we can least afford it."
Responding to a recent Times story on interchange legislation, Mica said that "nearly all" credit unions are "concerned about the extremely harmful effects that interchange legislation would have on the services credit unions offer their members." Eliminating or reducing interchange fee income could force credit unions "into the impossible decision" of raising member fees or ceasing participation in card programs, Mica added.
CUNA has fiercely opposed merchants’ proposals that would affect interchange fees, saying that interchange reflects a merchant's fair share of the costs of the convenient card system.
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