NCUA: Corporate Fees Still Unlikely
The NCUA said the total current projected range for future remaining corporate credit union bailout assessments is now between negative $2 billion and negative $600 million.
There will likely be no need for future assessments if both ends of the projected range of net remaining assessments stay negative, the agency said in a March 18 news release.
The range was negative $200 million to $1.6 billion at the end of the second quarter of 2013.
With the help of the JPMorgan Chase settlement in November 2013, total projected assessments associated with the temporary corporate credit union stabilization fund declined $2.2 billion at the upper end between July and December of last year.
NCUA Board Chairman Debbie Matz said, “An improving economy and NCUA's continuing efforts to effectively manage losses from the corporate failures at this time make us hopeful that we will not need to make future credit union assessments.”
The corporate stabilization fund is set to expire in 2021. Credit unions have paid $4.8 billion in assessments since it was created in 2009. Any corporate assessment rebates paid by federally insured credit unions wouldn't be returned until the stabilization fund's expiration in 2021, the NCUA has said.