Fed and Credit Unionsgreenspun.com : LUSENET : TimeBomb 2000 (Y2000) : One Thread
Fed Assures NAFCU Board on Y2K Cash, Liquidity Issues
WASHINGTON, Dec. 11 /PRNewswire/ -- Year 2000 issues were the main focus of off-the-record discussions during the National Association of Federal Credit Union's (NAFCU) report to the Federal Reserve Board of Governors on the credit union industry. This report has been an annual event since 1992 and is presented to the Fed by NAFCU's Board of Directors. Speaking on the record following the meeting, Governor Edward W. Kelley,Jr. addressed both Y2K cash and liquidity issues. Regarding currency availability, Governor Kelley said "the Federal Reserve Board will have enough currency in its vault to meet any possible need. What we need to make sure we have in place in addition to currency is a very, very good distribution system between our vaults and customers of financial institutions. Toward that end, credit unions can help us by making sure we have as much lead time as possible in anticipating the needs of your members." "The Federal Reserve Board is committed to backing up depository institutions to the best of our ability," said Kelley. "But you have to talk to your own members to make sure they know depository institutions are being backed up." Regarding liquidity backup and the Central Liquidity Fund (CLF), Governor Kelley remarked: "We are working hard to make sure the proper solution is reached on how liquidity backup will be available if it is needed. There are several different ways it can be done. We need to determine what is the strongest existing infrastructure we have in place. A solution is being very aggressively pursued with the Treasury and the NCUA, and we expect to place the issue on the Fed's agenda in the near future." Commenting on the meeting, NAFCU President and CEO Ken Robinson said, "It was a very substantial meeting, particularly in the discussion surrounding the CLF. We will continue to urge the Fed to raise the cap on the CLF in preparation for the century date change." NAFCU is the only national organization that exclusively serves the interests of federally chartered credit unions. NAFCU's 1,078 member credit unions are among the most progressive in the industry, representing 71% of total federal credit union assets and 58% of individual federal credit union members nationwide.
I'll bet the off the record comments were interesting.
-- Mike Lang (email@example.com), December 12, 1998
Mike: The credit union times site has info about what is happening that you may find interesting. The url is http://www.cutimes.com/y2k
The latest post is regarding the plan for the "potential Y2K-related liquidity shortage". CUtimes
-- Rob Michaels (firstname.lastname@example.org), December 12, 1998.
Here's a link to a Credit Union Times article on liquidity and cash:
-- Kevin (email@example.com), December 13, 1998.
I read recently that credit unions aren't covered by the new "Know Your Customer" regulations...which is not to say you shouldn't still be careful...
-- shimrod (firstname.lastname@example.org), December 13, 1998.
Time to start thinking about, and planning for inflation. Think Weimar Germany or Argentina in the 70's.
-- Mitchell Barnes (email@example.com), December 13, 1998.