No More Ignoring The Coronavirus

March 2, 2020 at 9:33 am Leave a comment

Governor Cuomo’s announcement that New York now has its first confirmed case of the coronavirus is simply the latest in a deluge of news indicating that the virus may very well be coming to a credit union near you in the coming months. In addition to the Governor’s announcement, the L.A. Times reported on West Coast cases which included the first case of “community spread”.

All this has me more than a little surprised that we haven’t seen the NCUA coming out with the type of guidance it has released in the past explaining the steps that they expect credit unions to be taking in preparation for a potential pandemic. That being said, any business that isn’t preparing for dealing with a chronic long term public health threat which has already impacted the economy isn’t doing its job.

Against that backdrop in previous guidance responding to earlier potential pandemics NCUA explained to credit unions: that they should have a pandemic preparedness plan to “reduce the likelihood that operations will be affected by a pandemic event” and that the plans should include a comprehensive listing of facilities systems or procedures to continue critical operations “if a large number of staff are unavailable for prolonged periods”.

In an ideal world all you should be doing right now is dusting off your existing protocols since NCUA expects you to be testing your pandemic preparedness on an ongoing basis as well as periodically updating your plans. On the bright side, technology has moved so rapidly in recent years that there are new ways of keeping your members tethered to your branch even if they feel like minimizing the amount of time they spend in public spaces. For example, remote deposit capture in conjunction with your existing online banking ensures that the credit union can continue functioning even if it had to close down a branch for a few days.

Even if the coronavirus threat is ultimately exaggerated, its economic impact is real. The yield on the Ten Year Treasury closed at a miniscule 1.082 on the 28th and Bloomberg Radio is reporting this morning that there is an increasing likelihood that the Fed will make an emergency rate cut of .25%. Furthermore, depressed corporate earnings triggered by China’s aggressive attempts to curtail the virus have already impacted corporate earnings.

All this means more uncertainty for your members and your credit union. In this environment, good luck predicting what conditions you will be waking up to six months from now.

A Legal Giant Steps Down

After 25 years on the bench, Judge Judy is hanging up her gavel at least for a year. Given the current state of politics in DC is it only a matter of time before we hear her name being floated to fill a future Supreme Court vacancy? After all, she had great ratings.

Entry filed under: Compliance, Economy, General. Tags: , , , , , .

MLA guidance Clarified; Wild Card Power Requested The Fraud at C B S CU Is A Wake Up Call For The Industry

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Authored By:

Henry Meier, Esq., Senior Vice President, General Counsel, New York Credit Union Association.

The views Henry expresses are Henry’s alone and do not necessarily reflect the views of the Association. In addition, although Henry strives to give his readers useful and accurate information on a broad range of subjects, many of which involve legal disputes, his views are not a substitute for legal advise from retained counsel.

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