Could Risk-Based Capital Be Heading for a Lawsuit?

CUNA and NCUA have both obtained legal opinions concerning NCUA’s authority under the Federal Credit Union Act to establish a tiered risk-based capital system. The problem is that the two opinions reach opposite conclusions. In addition, NCUA’s claim that the revised rule will only adversely affect 19 credit unions—versus the 199 credit unions adversely impacted by the original proposed rule—begs the question of whether a risk-based capital rule is really necessary. [1/23/15]