Links in “NCUA”

NCUA has posted to its website the 58-page legal opinion letter it obtained from outside counsel to support its proposal for a tiered net worth capital ratio. Critics have argued that the Federal Credit Union Act does not provide authority to the agency to establish a tiered system. [1/21/15]

NAFCU is sponsoring a free webinar for both members and nonmembers on Friday, January 23^rd from 1:00 to 2:30 pm EST that will feature Larry Fazio, NCUA’s Director of Examination and Insurance, discussing the revised risk-based capital proposal. Fazio is NCUA’s chief architect of the new proposed rule. [1/20/15]

Many commenters to the first proposed RBC rule claimed that the Federal Credit Union Act does not afford NCUA the authority to establish a two-tiered, risk-based net worth standard. NCUA Chair Debbie Matz has countered these concerns by stating that the agency obtained an outside legal opinion before proceeding with the revised proposal. [1/19/15]

The NCUA Board has approved a revised risk-based capital proposed rule. While not ideal, it is an improvement over the original proposed rule. Here’s what you need to know about the revisions and the other actions taken at yesterday’s board meeting. [1/16/15]

While CUNA and NAFCU praise NCUA for incorporating many of their recommendations into the revised risk-based capital proposal, they say that given the healthy capital ratios across the industry, the millions of dollars it will cost to implement the RBC rule just aren’t warranted. [1/16/15]

Much of the revised risk-based capital rule deals with changes to the risk weights for various categories of credit union assets. NCUA has provided a chart that maps out these changes in an easy-to-digest format. [1/16/15]

After the recent data mishap involving a lost thumb drive, the NCUA Board has approved payment of costs associated with the Palm Springs FCU data breach (up to $50,000). The NCUA is also taking additional steps to continually improve training and procedures to avoid such scenarios in the future. [1/16/15]

In response to reports based on a secret recording in which an employee of a Wisconsin credit union cites pressure from the NCUA to close a gun dealer's account, the president of the credit union has come forward to say that the account wasn't closed because of the NCUA, but because the credit union was not capable of monitoring the cash-intensive businesses at a level required by regulation. Consumer group says blame still falls on the Obama administration. [1/16/15]

Today we’ll finally see the outcome of the industry’s intensive lobbying efforts to obtain significant revisions to the original risk-based capital rule that NCUA first proposed last year. A revised RBC rule will be unveiled at today’s board meeting and the results are expected to be positive. [1/15/15]

Gun store owner records a conversation with a credit union official who claims the NCUA forced it to shut down the gun store's accounts because of Operation Choke Point, a Department of Justice initiative designed to make it harder for certain lines of business to access the legal banking system. NCUA denies that Operation Choke Point factored into the decision. [1/15/15]