Definition: A derivative is a contract between two parties which specifies the circumstances under which the parties will exchange payments.
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| Cold-blooded and of forked tongue !!! |
The other party is....
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| Aw, you're a CUte l'il thang you ... !!! |
... a warm and fuzzy little puppy!!
( ... this could get very ugly, very quickly!)
3 comments:
LICU. A CUte little puppy that makes a loan to a small business owner who is astute and profit starved. Almost as profit starved as the LICU, which like almost all other CUte credit unions, has not really been profitable for years and not growing.
LICUte then issues debt to its members to make even MORE loans to more profit-above-all-else small biz owners (who by the way, fail in DROVES every year).
NCYA anointing 1100 credit unions as LICUte is like the cop on the beat aiding and abetting the criminals.
Where' s Serpico when we need him, cause clearly we other credit unions and congress and Issa are looking the other way.
Nightmare on Duke Street.
Just in case some folks aren't up on the lingo, '"LICU" is short for "low income credit union", a designation recently handed out en masse by the NCUA. A LICU in theory has at least 50% of its membership as "low income" folks.
The LICU designation enables a CU to issue supplemental capital ("issues debt") .
Critics of supplemental capital fear that this capital tool may 1) change the character/philosophy of a credit union and 2) may enable a weak CU to grow beyond its managerial capacity resulting in add'l losses to the NCUSIF - and therefore to other CUs.
Critics also see the LICU designation as yet another example of NCUA's "rogue" approach to regulation and rule-making... an approch some feel flaunts existing law.
By the way, what's really amusing (or sad) is that "the puppy" always thinks it's "the smartest person at the the table".
"A puppy" also believes those fabulous hotels in Las Vegas are built from the winnings of those who gamble...
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