Mon, May 20, 2013
Washington, District Of Columbia
At its May Board meeting on Thursday, the NCUA Board of Directors released a proposed rule that would allow certain credit unions with at least $250 million in assets to invest in derivatives. This proposed rule comes after years of the Agency running a pilot program for a select group of credit unions. The proposal released by the Board is limited to “well-run” credit unions and only grants those institutions the ability to invest in simple derivatives that would serve as a hedge against interest rate risk. Furthermore, the proposal sets a fee to be paid by credit unions seeking to invest in derivatives to the Agency Part as a way of offsetting the costs of examination expertise. The fee being floated by the Agency would range between $25,000 and $125,000.
MDDCCUA will be examining this proposed rule very carefully and will be working with the Association’s Advocacy Committee to develop comments that can be submitted to the NCUA by early-July. If you have any questions regarding this proposed rule or would like to make comments on the proposal to be considered as a part of the Association’s comment letter, please contact Ricardo Pineres (firstname.lastname@example.org).