by: Nicholas Ballasy

NCUA Board Chairman Debbie Matz said she solicited 11 law firms around the nation to review the legality of establishing a two-tier risk-based net worth standard for the credit union industry.

Matz said the NCUA’s authority to implement the new capital requirements in the original proposal was raised during the first comment period.

“I solicited the independent legal opinion in order to perform my own due diligence. I ultimately chose the Global Banking and Payment Systems practice of Paul Hastings, based in Washington, D.C. Paul Hastings’ partners have years of experience on legal issues related to [prompt corrective action], from the perspectives of financial institutions as well as from the perspective of a federal agency,” she said at the NCUA’s monthly board meeting Thursday.

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