NCUA Deputy Executive Director Larry Fazio told the Board yesterday his team already has "solid estimates" on the size corporate loss exposure and other corporate stabilization expenses, and is on target to recommend an assessment figure this summer.
Despite new OTTIs at corporates, the NCUA's original credit loss estimates haven't changed much. That's because to date, only $600 million in actual confirmed losses have hit corporates, far shy of the total $12 billion expected to occur over the life of the toxic bonds.
However, that will change over the next two years, Fazio said. More than half-$7.6 billion-is expected to return to front-loaded corporate investment portfolios as actual losses during 2010 and 2011.
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