NCUA Media Advisory

“Chairman Fryzel Statement on the Ongoing Resolution of the Corporate Credit Union Situation”

May 21, 2009, Alexandria, Va. --  

“In many ways, yesterday’s events marked the culmination of a very difficult chapter in NCUA’s efforts to resolve the difficulties facing corporate credit unions, and the credit union industry as a whole. The President signed NCUA’s Corporate Stabilization Plan into law, and in doing so provides a responsible and pragmatic mechanism for credit unions to maintain a strong federal insurance fund in a financially manageable manner.  The Congressional interest demonstrated at the House Financial Institutions Subcommittee hearing was a further indication of the importance Congress has placed on the NCUA and the industry joining together to find workable solutions, just as past Congressional actions such as the raising of the CLF borrowing authority showed real commitment to proactivity and contingency-oriented policies.

There is serious work ahead as NCUA takes tangible steps to reform corporate credit unions. I underscore what I said to Congress yesterday; that NCUA intends to put the hard lessons we have learned to good use. I want the industry’s input.  I want the Congress’ input.  I will make certain that NCUA applies all of our diligence and skill to this process. The industry that we all care so much about, and that has served America’s consumers so well for the past century, deserves nothing less, and I look forward to the task ahead with optimism and a sense of purpose.”

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, also operates and manages the National Credit Union Share Insurance Fund, insuring the deposits of nearly 90 million account holders in all federal credit unions and the majority of state-chartered credit unions.

 

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