Credit Union Exam Solutions Presents With Flying Colors

How Will NCUA Respond to Silicon Valley Bank Closure?

Hey everyone. This is Mark Treichel with another episode of With Flying Colors. I am recording this on March 12th. Going to publish this Monday morning, and this is again about the ramification of Silicon Valley Banker sb. B being shut down. , I'm going to talk about how that might impact N C U A, what N C A might do and how that might impact you as a credit union.

So N C U A, what now? Because of. S v b Bank, but first, a lot has hit the news since I recorded, , the podcast that published on Sunday. And, , there was, there's some tweets out there that, , president Biden is saying there will be no bailout. There's some tweets out there that say Janet Yellen is, , saying there will be no bailout.

Janet Yellen, , was on the news shows this mor morning to help. , efforts to ensure that contagion doesn't happen. And I'll go into that a little bit. And these are all precursors of just the news that's hit in the last couple hours. And then I'll jump into, , the main topic, which is N C U A, what Now, I've also heard and seen some tweets that, , as I mentioned in my previously recorded podcast, there's no doubt F D I C and the Fed is trying to sell some assets, , this weekend.

And if they do, They turn it into cash, that cash quickly can be paid out or more quickly can be paid out to the uninsured depositors. All of that is good. , there's also a new article on the Wall Street Journal, , that says, regulators face urgent task to stem spread from Silicon Valley Bank. And, , Janet Yellen.

, , there's a quote from Janet Yellen, , treasury Secretary Janet Yellen. It says, I've been working all weekend with our banking regulators to design appropriate policies to address this situation. Treasury Secretary, , Janet Yellen said in an interview on Face the Nation on c b s, she didn't provide.

Specifics to those plans. We wanna make sure that the troubles that exist at one bank don't create contagion to others that are sound. We are concerned about depositors and are focused on trying to meet their needs. House speaker Kevin McCarthy said that he had discussed the issue with Ms. Yellen and Federal Reserve Chair Drew Powell, and that he was hopeful that the officials would be able to announce their next steps later on Sunday.

They do have tools to handle the current situ. Mr. McCarthy said, , on Fox News's Sunday Morning Futures. , they do know the seriousness of this, and they're working to try to come forward with some announcement before the market opens. I'm hopeful something can be announced today. So again, I've also heard that some bank sale information may happen before the Asian markets open up.

, and all right, so, , there. A lot of work going on at federal agencies, , over the weekend. I'm anticipating that some folks at N C A may be, , doing some number crunching as well. So that gets me to, okay, what happens now at N C U A? So, the N C A has a board meeting on Thursday. It's a light. , light agenda.

, there's only one item and it's the subordinated debt Final rule. I think they're tweaking it, , as it relates potentially to EIP and some other things that they've proposed, , relative to that. So that's a good rule. But that's all that's on the agenda. I'm expecting that, , ensu, a board chairman Todd Harper, will open up and discuss.

, what happened at, , S V B Bank and what that means for credit unions. I think he, when he does that, he will take it as another opportunity to say that Congress needs to provide more flexibility and make changes to the rule around the C L F, also known as the central liquidity facility because there were some laws that were in place under the pandemic.

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