TheWeekInCongress.com

Week Ending June 17, 2005

HR 1042 To amend the Federal Credit Union Act to clarify the definition of net worth under certain circumstances for purposes of the prompt corrective action authority of the National Credit Union Administration Board, and for other purposes.

 

BRIEF

   There are two accounting methods that can come into play when credit unions merge: One adds the assets of the absorbed credit union to the assets of the credit union absorbing it. As the bill sponsor noted about that method when applied to a credit union of $2 billion merging with another holding $2 billion, $2 billion plus $2billion equals $4 billion. The other method views the absorbed assets as acquired equity and results in the equation $2 billion plus $2 billion equals $2 billion.

    This bill would make the former method the rule.

Sponsor: Representative Spencer Bachus (AL-6^th)

Vote: Passed House by voice vote (June 13, 2005)

Cost to the taxpayers: No discernible cost.

## All Rights Reserved. © 2005 TheWeekInCongress.com No reproduction or distribution without written permission from TheWeekInCongress.com.

MORE INFORMATION

## All Rights Reserved. © 2005 TheWeekInCongress.com.

No reproduction or distribution without written permission from TheWeekInCongress.com.