Feb. 18, 2013


  • The worst design flaw we currently have in the CU system is related to your bullet #3. The average CU earns 3.5% at the margin. The arbitrary assessments moved that earning power to the balance sheet of the NCUSIF which shows an avg yield on investments of 1.83% as of Nov which is steadily declining since recent purchases average 80bps. Eventually, the $9 billion will be earning 270bps less than if they were left in the CUs until needed for actual losses.