Tuesday, August 30, 2011 1:00:00 PM
ALEXANDRIA, Va. - On Monday, the NCUA Board voted that credit unions will be assessed 25 basis points (bp) of their total insured shares to help cover corporate credit union stabilization costs. The agency expects it to bring $1.96 billion into the fund. The 2011 Temporary Corporate Credit Union Stabilization Fund (TCCUSF) assessment was approved at the NCUA's board meeting that was held at 1 p.m. yesterday.
NCUA Deputy Executive Director Larry Fazio reported that the total remaining cost of the corporate resolution has been recalculated, with a new estimate lowering those costs to between $3.9 and $8.2 billion. Fazio earlier this year said the agency would have to charge between $7 billion and $9 billion in future assessments to pay for the remaining losses from troubled assets at corporates. He added, however, that he could not predict how long the NCUA would need to continue charging TCCUSF assessments.
At the board meeting, NCUA said it will soon provide quarterly reports on the loss projections through a new page on its Web site. CUNA Chief Economist Bill Hampel said the agency would likely need to collect about $1 billion a year until the full costs of corporate stabilization are paid off. That would represent an assessment next year of around 12 bp of insured shares.
At the meeting the three-member board also approved a 30-day comment period for proposed technical changes related to Part 704 on corporate credit unions, as well as maintenance of the NCUA Guaranteed Notes (NGNs).
For CUNA's full summary of the NCUA Board meeting, click here. This aspect of the NJCUL site is limited to members only and is password protected. To receive a login, click "Register" on the home page of the League site.