Chairman Fryzel Identifies New Options for System-Wide Stabilization Assistance
NCUA Chairman Michael E. Fryzel issued the following statement today:
March 23, 2008, Alexandria, Va. -- “Events continue to move swiftly, and I have directed NCUA staff to explore two new avenues to augment NCUA’s Corporate Stabilization efforts. First, we have held preliminary discussions with Congress regarding the creation of a Corporate Stabilization mechanism, as an adjunct to the National Credit Union Share Insurance Fund (NCUSIF). This new mechanism would replenish the NCUSIF through an arrangement with the Treasury Department, while providing additional flexibility for credit unions to make their required contributions over a period of time. Specific details of the proposal will be available pending the Board’s review and decision at Thursday’s Board Meeting.
Second, I am evaluating the latest Treasury initiative to deal with troubled assets. This new ‘Public-Private Investment Program’ appears to hold some promise for corporate credit union holdings. NCUA is conducting a thorough review of the parameters of the Program, and if those details comport with relevant statutes and regulations we will utilize the Program in a way that affords NCUA more latitude in resolving problem assets.
I remain committed to a wide-ranging look at any and all fresh approaches to preserving a well-functioning, safe and sound corporate network, and protecting the interests of the nearly 90 million credit union members nationwide.”
The National Credit Union Administration is the independent federal agency that regulates, charters and supervises federal credit unions. NCUA, with the backing of the full faith and credit of the U.S. government, operates and manages the National Credit Union Share Insurance Fund, insuring the deposits of more than 89 million account holders in all federal credit unions and the overwhelming majority of state-chartered credit unions.
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