Links in “CUNA”

In response to an article published on June 6th, Bill Hampel, Interim CUNA President/CEO, penned a letter to the editor of the Wall Street Journal that was published on Saturday in which he takes issues with the article’s characterization that credit unions face increasing exposure to interest rate risk. Hampel remarks that credit unions' exposure to long-term risk is well-managed and points out that long-term CU assets comprise only 35% of total CU assets. [6/23/14]

Following a meeting with NCUA Board member Rick Metsger, CUNA Deputy General Counsel Mary Dunn reported that she believes that Mr. Metsger has an open mind to changes to the proposed risk-based capital rule. CUNA will be meeting with NCUA Chair Debbie Matz later this week in an effort to promote revisions to the rule that would include lowering the RBC component for well-capitalized credit unions; revising the risk weightings for certain assets such as business loans, mortgages, mortgage servicing, and CUSO investments; and eliminating the provision that would allow examiners to set higher minimum capital requirements on an individual credit union basis. [6/19/14]

On his final day as CUNA CEO, Bill Cheney, shares his thoughts about credit union taxation, CUNA’s regulatory and legislative successes during his tenure, and the future of risk-based capital. Cheney is returning to California to become CEO of the $10 billion SchoolsFirst FCU. [6/10/14]

A Wall Street Journal article published on Friday warned about increasing interest rate and credit risk in the credit union industry. CUNA CEO Bill Cheney in a letter to the paper responded that the article was not a balanced picture as the aggregate unrealized investment losses equal only 1.2% of the total credit union industry’s net worth. [6/9/14]

NCUA has come out swinging in its response to a letter sent by 75% of the members of the House of Representatives that called into questions the Agency’s proposed risk-based capital rule.  NAFCU and CUNA both encouraged the House members to take action and say that NCUA’s claim that the trades have overestimated the costs of the proposed rule is not supported by the facts. [6/2]

In a letter jointly signed by six industry trade associations, NAFCU and CUNA are urging Congress to limit the Justice Department’s ability to bring legal action solely on the basis of disparate impact. Disparate impact is defined as discrimination that results from an activity, despite any and all reasonable efforts to prevent the discrimination, that results in an adverse impact on a federally protected class. [5/30]

In a 47-page comment letter submitted to the NCUA, CUNA identifies serious flaws in the proposed risk-based capital rule and urges that the rule be withdrawn. CUNA states that the rule could cause significant harm to the industry, particularly in light of the fact that the Agency has failed to provide adequate justification for the major changes the rule would require. [5/29]

NCUA Board member Michael Fryzel has sent a letter to both CUNA and NAFCU in which he states that he believes the full NCUA board should vote on whether to extend the comment period for the proposed risk-based capital rule.  However, he added that he was confident that the final rule would include the suggested changes recommended by the two trade associations. [5/15]

A federal appeals courts ruled that a Wisconsin entertainer who bills herself as the “Banana Lady” had no basis for her suit against CUNA and two credit unions for violating her copyright. Some attendees at the CUNA Management School, where the “Banana Lady” performed posted videos and photos of her on their Facebook pages. [5/15]

CUNA Chief Economist, Bill Hampel, will take the (interim) reigns of the association until they can find a permanent CEO. Bill Cheney has stepped down in order to head SchoolsFirst Federal Credit Union in California. [5/8]