NCUA Sees $1.5 Billion In Losses From Three Corporate Failures
ALEXANDRIA, Va. – NCUA reported yesterday last fall’s three corporate credit union failures – of Southwest Corporate FCU, Members United Corporate FCU and Constitution Corporate FCU – are expected to bring losses of $1.5 billion after the final toll.
The loss estimates – $980 million for Southwest, $400 million for Members United and $145 million for Constitution – come after the three failures erased almost $1.6 billion of capital held by members of the three corporates.
The latest loss estimates are included in a new report issued by NCUA’s Office of Inspector General, which is conducting material loss reviews for the three corporate failures. Those reports are expected to be issued in July.
NCUA has liquidated the three corporate failures, as well as U.S. Central FCU and WesCorp FCU, as part of its corporate resolution plan estimated to cost credit unions as much as $16 billion.
The report also disclosed for the first time losses incurred by the National CU Share Insurance Fund from several other big credit union failures last year: Utah’s Family First FCU, $21.5 million; Oakland Municipal CU, $13.7 million; New Mexico’s Land of Enchantment FCU, $1.1 million; and, Philadelphia’s Phil-Pet FCU, $1 million.