After months of speculation, the NCUA revealed on Sept. 24 a "good bank, bad bank" plan to deal with corporate legacy assets.
The revelation that NCUA sold $800 million worth of U.S. Central FCU and Western Corporate FCU securities in mid-September
There was little news revealed in NCUA's Virtual Town Hall today, as the regulator primarily focused on reviewing corporate stabilization events that have occurred so far.
NCUA's plan to issue bridge charters for seized corporates was crafted to allow all member credit unions to choose whether they want to be part of recapitalization.
NCUA today announced the Temporary Corporate Credit Union Stabilization Fund has been extended to June 30, 2021, with the concurrence of Treasury Secretary Timothy F. Geithner.
New securities issued from legacy assets will be guaranteed by NCUA, said Deputy Executive Director Larry Fazio.
NCUA's final corporate rules simplified limitations on permissible investments for wholesale credit unions.
Credit unions will be allowed to purchase securitized legacy assets, said NCUA Deputy Executive Director Larry Fazio.
NCUA will transfer the legacy assets from five seized corporates into a trust, and securitize them for investors from there.
NCUA today placed three corporate credit unions into conservatorship: the $7.4 billion Members United Corporate FCU, the $9.5 billion Southwest Corporate FCU and the $1.2 billion Constitution Corporate FCU.