Outside Experts Mull Foreign Investments; Corporations May Be Reigned In
Arndorfer, James B., American Banker
Corporate May Be Reined In
An outside panel may urge tighter regulation of foreign investments by corporate credit unions, according to a National Credit Union Administration official.
In February, the NCUA slapped a moratorium on investments in foreign banks by U.S. Central Credit Union and corporate credit unions.
That temporary ban may become permanent.
"The preliminary data suggest that the chairman's moratorium on foreign investments was right on the numgers," Karl Hoyle, NCUA executive director, said in an interview last week.
Norman E. D'Amours, chairman of the NCUA, asked corporate credit unions in February to suspend such investments, but it was understood that the board would force compliance if it was not done voluntarily.
The moratorium was spurred by U.S. Central's $255 million deposit in a troubled Spanish bank. It is supposed to remain in effect until the agency finishes reviewing the corporates, including an investigation by the five-member outside panel appointed in March.
Harold Black, a former NCUA board membe3r and chairman of the finance department at the University of Tennessee, Knoxville, heads the panel.
A Team of Academics
Other members of the panel are: Jim Kudlinksi, president of U. …