Thursday, December 08, 2016

The NCUA Budget: Easy Money ... Part 7 1/2

Joe Friday!
Have a couple of skeptics in the readership who say they want more FACTS  (see comment prior post). 

Asking for more information on the $800 million portfolio recently purchased by NCUA's investment experts is entirely reasonable, especially since the NCUSIF belongs to credit unions and their members. 

Are you
You do remember that you carry your 1% NCUSIF deposit on your CU balance sheet as an asset, right?

You do know that you and your CU board have a legal liability - called a fiduciary responsibility - for  your balance sheet, including that 1%, right?

Here's the specific unrealized loss information on each investment as valued around the close of the market yesterday (@4:00p.m EST. 12/07/2016):
  $Amt     Mat. Date    Yld at Pur.   Unrealized Loss   Mkt. Yld.
 $200 m     2/15/26         1.49%            ($14.33 m)           2.35%
 $ 50 m      8/15/26         1.59%            ($ 3.35 m)            2.36%
 $200 m     8/15/26         1.57%            ($13.63 m)           2.36%
 $100 m     8/15/26         1.59%            ($ 6.64 m)            2.36%
 $150 m     11/15/25       1.73%            ($ 7.55 m)            2.34%
 $100 m      5/15/25        1.76%            ($ 4.28 m)            2.31%
$800 M                                ($ 49 m+)


[Feelin' good about that little fiduciary legal liability?]


Anonymous said...

From USA Today, today: "Freddie Mac said markets are displaying 94% confidence of an 0.5 percentage-point increase"

50 bps, not 25. I wonder if the bond market has priced this in to 10 year yields yet.

Anonymous said...

F ACT. Without facts and the willingness to be transparent, the overall ACT grade is a 5.
Without credit unions holding NCUA accountable, who are they relying on for playing the role of accountability manager?
All you have to do is read Berger's nonesensical comment in today's CU Times to know the folly of the credit union system.
Berger and trade association affectiveness is reduced to dumb letters and quotes.
"If banks spent more time...". In response to the ABA lawsuit.
Well, messrs Berger, Hampel, nussle....
...if you spent more time having our backs, we wouldn't have had the CCU explosion, which led to NCUA having to borrow $25billion or so.
We would have the looming medalliongeddon.
Makes me wonder why we ever paid dues, now that we don't.

Since no one but mr Blaine seems to have an appetite for accountability, we are waiting on congress.

Anonymous said...

And let's note for the record it is you, mr. Blaine who has provided the facts.


No feedback from Berger?
No hike the hill for a real regulator?

No collective letter writing campaign to protest the malfeasance and absconding of our capital?
Let's count the ways...
23% legal fees not out for RFP.
CCU bond massacre.
Bloated headcount with a shrinking industry.
Non listening tours and town halls.
Soon, medallion loan ASSESSMENTS.

We credit unions seem to be ok with wasting our owners money.
And that's before we consider dues for trade associations.

Anonymous said...

If the number of CAMEL 3, 4, & 5 credit unions has declined as the NCUA has stated in press releases why...the Assessments for 2017? With the billions in recoveries from the NCUA mismanagement of Corporate Credit Unions...why the Assessments? Hello, CUNA. Hello, NAFCU. Is anybody home. We are so grateful not to be dues paying, card carrying members of these pseudo-intellectual trade associations. Just who's INTERESTS are they protecting? Can you say: "self-serving?"

Anonymous said...

What? The trades were responsible for the staff inside of the NCUA for the corporate crisis? Moronic statement. NCUA senior staff and the board are responsible for not properly examining corporates that cost our credit union millions. Place the blame at the feet of those responsible and fire them.