The following questions were sent to creditunions.com and Credit Unions Rising for submission to this Wednesday's NCUA Corporate Credit Union Update call.
1. Since the corporates are at present solvent, and the NCUA is sitting on the stabilization funds, what type of dividend to credit unions is planned?
2. So if the NCUSIF deposit is returned to 100% for accounting purposes, what happens if a CU withdraws from the NCUSIF and purchases private insurance on July 1? Would the refund of the deposit be 100%?
3. The one question that needs to be answered is "What is NCUA's End Game". It seems very unlikely the corporates can earn their way out nor is the value of their investment portfolio going to turn around significantly any time soon to make much difference and recapitalization by the natural person credit unions of the corporate systems is not going to happen so what is the plan?
- What about the REAL plan for corporate stabilization based on the ANPR? Will we see consolidations of corporates, capital requirement changes, investment authority changes, and a separate insurance pool? If so, what's the timeline for some of the actions?
- Does NCUA plan to hold the conserved CU’s investments until maturity?
- In the past week, we were made aware of more 4 & 5 rated [natural person credit unions]. When can we expect the other shoe to drop, an announcement of more cost to healthier NPCU's in addition to the corporate stabilization? Do we have even rough estimates on anticipated NPCUs losses?
4. It is not too much of a leap to deduce from the actions taken and being taken that the NCUA might have an additional goal, unpublished, as an outcome. Is there an effort by the NCUA to restructure the make up of the credit union movement into:
- a smaller number of credit unions and
- an elimination or severe diminishing of credit unions under a selected size.
- an organization of only credit unions above some 'magic' asset size? >$300M as an example.
5. Some CU's might not want to reverse the entries we made in 2008 or early 2009 because we want the write off over and done with and don't want to extend it another 7 years.
Are we required to reverse the entries if we dont want to?
6. Will there be an adjustment to the fund resulting from the increase of insured shares at NPCU's caused by insurance levels going from 100,000 to 250,000? If there is an increase will it be set up and accounted for as a receivable since the increase is only temporary at this point and will be theoretically returned at some point in time.
7. What is the NCUA best estimation or forecast of 2009 and 2010 insurance costs (including corporate stabilization, increased insurance costs of $250k, share growth and CU failures or merger assistance) to natural person credit unions?