We've seen some really wacky CU lending already with MBL.... We've also seen NCUA's total and complete lack of supervision and oversight of cu activities.... corporate and NPCU. So it comes as no surprise that the New York Credit Union Association is so pumped up on MBL.... they won't be paying the price of clean up! It reminds me of the little guy pushing the group on to a fight... while remaining well out of harms way.
You're totally right --- It won't cost the federal government $1..... it will however, result in massive assessments to the members of credit unions under the current set up.
Have NCUA get their act together. Put some beefed up capital requirements in place (so the tab is smaller when it all goes south). Limit the MBL to real MBL and not speculation, require some "skin in the game" .... then I'll say Thanks Chuck. Right now..... NO THANKS Chuck...
We haven't finished paying for the last debacle.... why set us up for another when we still have all the assessments to go? Everyone said "no one saw it coming" with the corporate melt-down... I'm telling you now.... under the current regulations -- the next one is coming soon!
According to CUNA some 334 credit unions are nearing the 12.25% MBL lending capital. Yes, that is correct 334 out of some 7400 credit unions. So now we have a clear picture a mere 4.5% are approaching the lending limit. Naturally they are mostly large credit unions. And so it only stands to reason our robust trade associations both of them CUNA and NAFCU must once again do the bidding for these big boys. After all they are paying the freight for the trade associations. To the remaining 95.5% of the credit unions that are not anywhere near the MBL limit prepare to spend your political capital to further the objective of the 4.5% group. It is all about credit unions helping credit unions. And when those 4.5% go bust/belly up well you can write a check for that too. You see we are all in the assigned risk pool. We all pay for the few, reckless, careless bets placed by the highrollers. We have seen this play out previously. How do you spell WesCorp and USCentral. Same concept. Reckless bets and others pay for the clean up. This is the next train wreck. Sadly the train has left the station. Keep the date stamp on this 9-9-2011. After the train wreck 1st Thoughts can say: "I told you so." Tell me, is there a way we can opt out of the NCUA mailing list when it comes to these assessments? We don't do MBL. So why am I on the hook for Telesis Credit Union and the other incompetents engaged in this high risk venture without the competence to properly administer it? Don't take my word for it - read the Call Report.
ReplyDelete