Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive
150x172_CUEffect.jpg
Contacts
LISA MCCUEVICE PRESIDENT OF COMMUNICATIONS
EDITOR-IN-CHIEF
MICHELLE WILLITSManaging Editor
RON JOOSSASSISTANT EDITOR
ALEX MCVEIGHSTAFF NEWSWRITER
TOM SAKASHSTAFF NEWSWRITER

News Now

Washington
CUNA backs plan to allow FCU TIPS investments
WASHINGTON (12/3/12)--Federal credit unions should be permitted to invest in Treasury Inflation Protected Securities, the Credit Union National Association (CUNA) said in a comment letter to the National Credit Union Administration (NCUA).

Allowing such investments, as proposed by the NCUA, will allow credit unions to protect against inflation and manage interest-rate risk, wrote CUNA Senior Vice President and Deputy General Counsel Mary Dunn. She also urged the agency to work with state regulators to find a way to let well-managed state credit unions invest in these securities.

Currently, investments in TIPS are allowed under a limited basis under a pilot program.

CUNA believes that "a credit union should undertake sufficient analysis before purchasing any TIPS and be able to manage its TIPS investments on an ongoing basis, current requirements regarding due diligence and risk management are sufficient, and no additional requirements in these areas should be imposed on credit unions in connection with TIPS authority,'' she wrote.

The TIPS market has been in existence for 15 years and TIPS are fully guaranteed by the U.S. government. The principal is adjusted based on changes in the Consumer Price Index, while the interest rate, which is paid semiannually on the adjusted principal, remains fixed.

Use the resource link to access CUNA comment letters.


RSS





print
News Now LiveWire
What role are #creditunions playing in @gatesfoundation's 2030 vision of financial services? Read #NewsNow Monday
13 hours ago
Consumers fear inaccurate info lingers on credit reports, says @FTC study Read @CUNA's News Now: http://t.co/RzNLMnaROO
15 hours ago
@PCUA has formed a @LinkedIn networking group for former bankers turned #creditunion employees.
15 hours ago
.@politico reports Democrats haven't picked the city yet, but their 2016 convention will be held the week of July 25.
15 hours ago
.@cuna, @DCUC_HQ urge @CFPB to exempt #CUs from changes to Military Lending Act rules cuz CUs aren't part of the targeted problem. NN Monday
17 hours ago