Corporate Stabilization Fund Improved Last Year
The Temporary Corporate Credit Union Stabilization Fund made progress against legacy asset losses in 2011, improving the fund’s net position from 2010, according to audited financial statements released by the NCUA. The fund also received a clean report from outside auditors.
NAFCU President/CEO Fred Becker and CUNA Senior Vice President of Research and Policy Analysis Bill Hampel both praised the NCUA for releasing the financial reports earlier than last year’s reports, when the agency waited until Dec. 27.
The NCUA added that the estimated losses from the guarantee of NGNs were zero at year-end.
Total legacy assets collateralizing the 13 guaranteed notes have an aggregate unpaid balance of $34.3 billion, with a recovery value of $24.5 billion, as of Dec. 31, 2011. Credit ratings on the securities included in legacy assets fell during 2011.