c. myblog

October 29, 2009

2010 Budgeting Process: Focusing On What You Control

There are only five levers that are pulled to arrive at an ROA, and every single one is under threat to some degree: Yield on assets is under attack from external forces as rates are at historic lows and loan demand is down. Cost of funds has been helped somewhat by low rates.  However, it […]

July 2, 2009

A Couple of Questions to Consider Concerning Implementation of the Corporate Stabilization Fund…

How will you factor in the potential assessments, if at all, when evaluating long-term financial performance given that the dates and sums of the assessments will be unknown until 90 days before they are due? Will you factor in the potential assessments when evaluating financial performance and making business decisions or will you view the […]

April 3, 2009

Response to the ANPR for Part 704

Below is an excerpt from our response to the ANPR for Part 704.  We encourage you to read the full nine-page version, which can be downloaded here.  Your thoughts and comments are appreciated. Overview It is apparent that the corporates with expanded investment authority are experiencing greater risk.  However, the range of risk varies in […]

March 21, 2009

Conservatorship of U.S. Central and WesCorp

Reading NCUA Letter 09-CU-06 was difficult.  However, since our founding in 1991, we have encouraged our clients to always consider Event Risk Conditions.  Most would agree that we are in such conditions!  Since the publication of NCUA Letter 09-CU-02 in January, we have encouraged our clients to consider the likelihood of additional assessments.  Following 09-CU-06, […]

March 11, 2009

Recapitalizing the Corporates

We have been asking numerous credit unions the following: Assume corporates are stabilized but need to be completely recapitalized.  If the system were restructured and you felt it safe, how much would you be willing to spend as a percent of assets to recapitalize?  The most common answers are ” zero” and “we have not […]

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