The National Credit Union Administration (NCUA) has proposed a new investment rule that eliminates the need to obtain top grades from the rating agencies, replacing it instead with the judgment of a credit union's management.

The rule was mandated by Congress after it was discovered that many Triple A-rated mortgage securities turned out to be junk and eventually caused failures at numerous financial institutions, including "wholesale" federal credit unions such as Central Federal Credit Union and WesCorp Federal Credit Union.

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