WASHINGTON New analysis by Co-Ops for Change of the five failed corporates’ spreadsheets asserts that the NCUA Guaranteed Notes balance currently is over-reserved by $10 billion.
The analysis comes at the same time NCUA set this year’s corporate stabilization assessment at eight basis points, or $700.9 million. Last year’s assessment was 9.5 bps, or $790 million.
According to a statement released by Co-Ops for Change (
The analysis shows more than $5 billion in unused loss write-downs, saying it is feasible that natural-person credit unions could recover some funds. The affected securities have continued to pay principal and interest, and just from interest alone, the release pointed out, the income from the securities adds up to nearly $50 million per year even if losses ultimately are very close to the final numbers, it said, the earnings in the interim will help offset original projections.
Chip Filson, founder of Co-Ops for Change and chairman of Callahan & Associates, urged NCUA to postpone the 2013 TCCUSF assessment. “I am hopeful that NCUA will use this opportunity to position itself as a thoughtful, learning organization. Right now, while deliberating on the corporate assessments, it is possible to adjust course, play up the potential of the credit union charter, and avoid sacrificing credit union member-owners’ trust in the system simply to perpetuate a past approach.”
Co-Ops for Change is a website created by Filson, with a stated goal of re-orienting credit unions, including NCUA and the political process of board appointments, back toward the Seven Cooperative Principles.
