updated 07/15/13 01:30 PM
The Facts About NCUA's Proposal
What are derivatives, and how will the National Credit Union Administration’s (NCUA) proposed derivatives rule impact your credit union?
The proposed rule would allow eligible credit unions to hedge interest rate risk—but exactly how the derivatives rule will impact credit unions has created an air of skepticism.
To assist you in understanding the proposed rule and its potential impact, the California and Nevada Credit Union Leagues are inviting executives and other professionals to watch an extremely relevant archived webcast, Derivatives Defined and NCUA's Proposed Rules. The presenter, Joe DeMichele, vice president of institutional sales for D.A. Davidson & Co., discusses the topic of derivatives and why the proposed rule is pertinent to credit unions.
NCUA's proposal introduces the concept of pay-to-play, not only with application fees for those credit unions choosing to apply for derivatives authority, but also with how the NCUA will recover increased monitoring and supervision costs.
The webcast requires a log-in; however, there is no fee. The webcast is complimentary and provided to help inform you of this important NCUA proposed rule. By viewing this archived webcast, you'll have the opportunity to:
  • Learn what derivatives are and why NCUA’s proposed rule is important to your credit union.
  • Gain an overview of the NCUA's proposed rule, including: derivatives transactions permitted to hedge against interest rate risk; the types of derivatives permitted, including interest rate caps and interest rate swaps; and proposed derivatives eligibility, program requirements, and fees.
  • Understand the risks associated with derivatives.
  • Identify how this proposal may affect all credit unions, regardless of size.
"Whether or not your credit union is eligible for derivatives authority under this proposed rule, it is essential that you know all the facts, as you may share the cost burden," said Sharon Lindeman, vice president of regulatory advocacy for the Leagues. "We encourage you to view the webcast, get the information you need, and submit your comments to the NCUA through PowerComment.org."
After viewing the archived webcast, visit PowerComment.org today to let your voice be heard!
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