JPMorgan Settlement Relieves Assessment Burden
The 2014 estimated corporate assessment range was but one item on the NCUA board’s Nov. 21 meeting agenda. However, the board’s estimated range of zero for the annual charge grabbed headlines because it marked the end of a costly era for federally insured credit unions. Since 2009, those credit unions had collectively paid $4.8 billion in annual assessments to cover the cost of corporate stabilization after five corporate credit unions failed due to investment losses.
The lack of a 2014 corporate assessment was the direct result of a record $13 billion settlement the Department of Justice reached Nov. 19 with JPMorgan Chase that includes $1.417 billion earmarked for the NCUA.