Fryzel Addresses Creation Of A Systemic
Risk Council

May 7, 2009, Alexandria, Va. – NCUA Chairman Michael E. Fryzel today issued the following statement in response to FDIC Chairman Sheila Bair’s testimony yesterday regarding Congressional creation of a systemic risk council.

“I note with interest FDIC Chairman Bair’s comments before the Senate Banking Committee that outlined the possible creation of a council responsible for monitoring systemic risk in the financial system. As I stated during my testimony before the same Committee in March, I agree with the concept of a regulatory oversight entity that would better identify and mitigate risk. While I continue to recommend the preservation of the current regulatory structure, where NCUA and other entities retain their supervisory and insurance functions, I also see significant policy benefit to a council responsible for broad standard setting as well as monitoring of implementation of prudential guidelines.  This new council would promote uniformity while enabling NCUA and others to carry out our safety and soundness mission, and I encourage Congress to make certain that NCUA is included as a council member in any legislation that would create such a systemic risk council.”

  The National Credit Union Administration charters and supervises federal credit unions. NCUA, with the backing of the full faith and credit of the U.S. government, also operates and manages the National Credit Union Share Insurance Fund (NCUSIF), insuring the deposits of nearly 90 million account holders in all federal credit unions and the majority of state-chartered credit unions. NCUA is funded by credit unions, not federal tax dollars.

-NCUA-