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May 03, 2017
NCUA recovers $400M, recoveries now total $5.1B
The NCUA announced Wednesday it had recovered $400 million from Credit Suisse for claims related to the purchases of faulty mortgage-backed securities, bringing the agency's total recoveries to $5.1 billion.
The Credit Suisse recovery comes two days after the agency announced a recovery of $445 million from UBS. Both recoveries were on behalf of U.S. Central Federal Credit Union and Western Corporate Federal Credit Union; yesterday's recovery was also on behalf of Southwest Corporate Federal Credit Union.
NAFCU Executive Vice President of Government Affairs and General Counsel Carrie Hunt thanked the NCUA Board for its continued focus on transparency and its diligent pursuit of recoveries, which will offset credit unions' stabilization costs.
"NAFCU and our members thank NCUA Board Chairman J. Mark McWatters and Board Member Rick Metsger for their leadership and efforts on this important issue," said Hunt. "NAFCU continues to urge the agency to explore all options for a direct refund to credit unions from the stabilization fund."
During last month's board meeting, McWatters again mentioned his proposal to close the TCCUSF early and wrap it into the National Credit Union Share Insurance Fund. NCUA Chief Financial Officer Rendell Jones noted that research is being done on this idea.
The NCUA's recoveries in suits over MBS will offset the total costs to credit unions of the corporate stabilization program.
NAFCU continues to urge the NCUA to explore any options that would allow the agency to issue Temporary Corporate Credit Union Stabilization Fund rebates to credit unions before 2021, when the fund is scheduled to close. Credit unions have paid $4.8 billion in assessments since the creation of the fund in 2009; no further assessments are expected.
NAFCU also continues to update its "NCUA Money Watch" page, which keeps tabs on the NCUA's budget and finances. NAFCU will provide ongoing updates there on the TCCUSF.
The NCUA still has pending litigation against various residential MBS trustees and LIBOR banks related to corporate credit union losses.
The Credit Suisse recovery comes two days after the agency announced a recovery of $445 million from UBS. Both recoveries were on behalf of U.S. Central Federal Credit Union and Western Corporate Federal Credit Union; yesterday's recovery was also on behalf of Southwest Corporate Federal Credit Union.
NAFCU Executive Vice President of Government Affairs and General Counsel Carrie Hunt thanked the NCUA Board for its continued focus on transparency and its diligent pursuit of recoveries, which will offset credit unions' stabilization costs.
"NAFCU and our members thank NCUA Board Chairman J. Mark McWatters and Board Member Rick Metsger for their leadership and efforts on this important issue," said Hunt. "NAFCU continues to urge the agency to explore all options for a direct refund to credit unions from the stabilization fund."
During last month's board meeting, McWatters again mentioned his proposal to close the TCCUSF early and wrap it into the National Credit Union Share Insurance Fund. NCUA Chief Financial Officer Rendell Jones noted that research is being done on this idea.
The NCUA's recoveries in suits over MBS will offset the total costs to credit unions of the corporate stabilization program.
NAFCU continues to urge the NCUA to explore any options that would allow the agency to issue Temporary Corporate Credit Union Stabilization Fund rebates to credit unions before 2021, when the fund is scheduled to close. Credit unions have paid $4.8 billion in assessments since the creation of the fund in 2009; no further assessments are expected.
NAFCU also continues to update its "NCUA Money Watch" page, which keeps tabs on the NCUA's budget and finances. NAFCU will provide ongoing updates there on the TCCUSF.
The NCUA still has pending litigation against various residential MBS trustees and LIBOR banks related to corporate credit union losses.
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