|RBC - A Fork in the Road|
BLAST FROM THE PAST!
(originally published 3/17/14)
... in which CU members seeking MBLs
get thrown under the bus!
In yesterday's post we took a look at the severe threat that NCUA's newly proposed risk-based capital (RBC) rule poses for credit unions and all the folks involved with credit unions - members, employees, vendors, all consumers in general.
… always unaccountable.
But, most importantly, that you must raise your voice against this mis-regulation, this undemocratic mis-government. So, I'm trying to find that bit of self-interest that will lurch you out of your apathy to file a comment on the proposed reg - because your voice will make a significant difference. Yesterday, we took a look at the capital tax penalty applied by NCUA to member first mortgage loans.
Today let's take a look at member business loans (MBLs)…
If a member wishes to make a business loan (MBL) at a credit union, under NCUA's proposed RBC rule here's the capital tax penalty the member will pay for "choosing your credit union":
MBLs < 15% of total assets: 100% 100%
MBLs > 15%< 25% of assets: 100% 150%
MBLs > 25% of assets: 100% 200%
"Why is NCUA proposing an excessive capital tax on CU member business borrowers, which will kill jobs and hurt economic growth?"