NCUA Eyes Big Assessment For Corporate Bailout

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ALEXANDRIA, Va. – The NCUA Board is expected at next week’s meeting to approve an assessment that could be as much as $400 million for the second round of the Corporate CU Stabilization Fund.

The assessment, following last year’s $337.5 million charge for the corporate bailout, will cover costs NCUA has accrued for the bailout of U.S. Central FCU and WesCorp FCU, the two corporate giants run under NCUA conservatorship since March 2009.

The NCUA Board will set a payment due date for the corporate assessment at next week’s meeting.

The assessment for the corporate bailout is one of two big charges expected by NCUA, which plans to assess a premium for the National CU Share Insurance Fund later this year. NCUA charged a $727.5 million premium last year, a total of almost $1.1 billion charged credit unions by the agency.

Setting of the corporate bailout charge comes as NCUA is preparing a plan that would remove as much as $50 billion in toxic assets from the entire corporate system and securitize them for sale on the secondary market. Losses on the corporates’ assets are projected to exceed $10 billion and require annual assessments on all federally insured credit unions for at last seven years.

 

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