Tuesday, November 17, 2015

Statuary Authority...

I generally don't read fiction, but happened to be reading CUNA's Membership@Work newsletter recently for the 2nd quarter of 2015 [here's the link], when I ran into the following unusual thought.

On page 3 of the newsletter is an article summarizing CUNA's April 17, 2015 comment letter [here's the link] to NCUA on the proposed risk-based capital (RBC) rule.
The statuary risk group...
The article says one of CUNA's key points in the comment letter was that: "NCUA does not have statuary authority to establish a RBC standard for the purposes of determining whether a credit union is well-capitalized."

Would hope that that statement is true, but the way NCUA has been acting the last few years, would be willing to bet NCUA thinks it has statuary authority over credit unions, if you know what I mean!

But in all seriousness, CUNA's letter does clearly state...

"II. NCUA Does Not Have The Statutory Authority To Establish A Risk-Based Capital Standard For The Purposes Of Determining Whether a Credit Union Is Well-Capitalized."

So now the awkward question is: "CUNA since NCUA told you "to pound sand" on this issue in the final rule, are you going to sue?


1 comment:

Stuart Perlitsh said...

CUNA will once again do the correct thing. Send this to a CUNA committee for further study and analysis. At the stage analysis become paralysis they will do nothing. CUNA calls this paralysis by analysis. CUNA has much expertise on this subject matter.