ALEXANDRIA, Va. (2/13/09)—During a 90-minute webcast Thursday, National Credit Union Administration (NCUA) Chairman Michael Fryzel underscored that the agency continues to examine alternate approaches to funding the corporate stabilization program the agency announced last month. The program provided $1 billion in capital to U.S. Central FCU and a guarantee for all corporate deposits through this month; the guarantee will be provided through December 2010 for corporates that sign an agreement with NCUA. In announcing the program in January, NCUA said it would fund it through an insurance premium to federally insured credit unions and a partial replenishment of their 1% National Credit Union Share Insurance Fund deposit. In introductory remarks, Fryzel said the agency is working with stakeholders to determine if there are other approaches that are “responsible and realistic” and meet statutory requirements. The NCUA’s formal presentation focused largely on accounting issues and its insurance fund reserving methodology, with most of the session reserved for questions. Not surprisingly, the regulator’s session on one of the credit union system’s hottest current topics drew broad interest. At the end NCUA Executive Director Dave Marquis noted the agency had received 1200 questions from webcast listeners. The program’s participants were allowed to submit questions during the webcast via the Internet. Speakers, including Marquis, Acting Examination and Insurance Director John Kutchey, and Loss/Risk Analysis Officer Steve Farrar, discussed the accounting and reserve issues related to stabilization. Marquis said that after considering the available options, the NCUA elected the stabilization program it believed would be least expensive for credit unions while offering the most flexibility for a future dividend. The NCUA, he said, evaluated the impact of the corporate stabilization plan on the net worth of the credit union system. With an average net worth of 11.1%, the NCUA estimates that less than 175 credit unions will be “significantly impacted” by the impairment to the NCUSIF. The Credit Union National Association (CUNA) continues to urge the NCUA to consider alternate funding options. CUNA has maintained that there is no "silver bullet" approach—no single answer—to the challenge of providing adequate money for the agency’s corporate liquidity program. CUNA has warned that the current plan to assess a 2009 share insurance premium on credit unions could put too much pressure on a system that is already coping with tough economic conditions. (See related story: Corporate CU Task Force backs CUNA alternatives) For the webcast’s Q-and-A session, Central Liquidity Facility President Owen Cole, Deputy Executive Director Larry Fazio, and Office of Corporate Credit Union Director Scott Hunt joined in to help address listeners’ concerns. Use the resource links below for the NCUA’s document related to its corporate CU plan and to access CUNA’s resources.