NCUA’s General Counsel Clarifies Supplemental Capital Issue
In an effort to clarify a statement he made during a recent Congressional hearing, NCUA General Counsel, Mike McKenna, has issued a letter to the committee chair that explains that while the proposed RBC rule addresses the use of supplemental capital for low-income credit unions, it does not and cannot address the issue of supplemental capital for other credit unions. McKenna explained that the Federal Credit Union limits the use of supplemental capital or secondary capital to only low-income designated credit unions and that Congress would need to amend the Act to authorize NCUA to expand the use of supplemental capital to all credit unions. McKenna added that NCUA supports a legislative change. [4/10]
