ALEXANDRIA, Va. – NCUA said this afternoon it will vote this year’s corporate credit union stabilization assessment next week, which is likely to bring the cost of the corporate resolution to the $10 billion mark.
NCUA is expected to approve an assessment of just under $1 billion, making a total of $4.3 billion in assessments over the past four years. NCUA has also converted $280 million of National CU Insurance Fund reserves to pay for the corporate resolution.
NCUA has also recovered $170.7 million in settlements with several banks on claims related to the failed corporates.
The assessments are paying for the liquidation of five failed corporates: U.S. Central FCU, WesCorp FCU, Members United Corporate FCU, Southwest Corporate FCU and Constitution Corporate FCU. NCUA projects the corporate resolution will cost credit unions as much as $21 billion.
NCUA said even before it liquidated the five corporates credit unions had lost $5.6 billion of their capital in those institutions.
This year’s assessments will be due in the third quarter and will be accounted for in third quarter financials.