Dear Board of Directors:
The purpose of this Letter is to provide all Federal Credit Unions with the same guidance provided to NCUA field staff about supervision considerations on the recently announced corporate stabilization efforts. The attached Supervisory Letter was recently provided to NCUA field staff.
NCUA appreciates the delicate balance credit unions must strive to achieve between the short-term and long-term needs of the credit union. It is essential management and examiners have an open and ongoing dialogue on the strategic direction of the credit union in relation to earnings and net worth and not overly focus on the financial impact of the actions taken by the NCUA Board.
Michael E. Fryzel