While the NCUSIF’s equity ratio is headed in the right direction, it’s not clear how much it will benefit the bottom line of credit unions.
ALEXANDRIA, Va. — If current financial trends continue, the NCUSIF's equity ratio will likely end the year at between 1.28% and 1.32%, which could mean a lower assessment to pay for the corporate credit union rescue, NCUA Chief Financial Officer Mary Ann Woodson told the agency's board last Thursday.
The NCUSIF's equity ratio will likely end 2011 at between 1.28% and 1.32% and possibly lower assessments for corporate rescues could follow.
The NCUA says it's not developing a contingency plan for helping credit unions that stay deal with any new costs from more departures.
Proposed rule lets NCUA assistance to a troubled or acquiring credit union to count as regulatory net worth.
Agency tells trade groups no move needed because such conversions are "relatively rare" and that converting CUs will pay this year's assessment to corporate rescue fund.
More of the costs left over from failed corporate credit unions will hit most existing credit unions in late September. The NCUA Board approved assessing federally insured credit unions an additional 25 basis points of insured shares to help foot the bill for the Temporary Corporate Credit Union Stabilization Fund.
Agency says corporate rescue fund can't count on recouping any losses in lawsuits against investment firms.
Corporate rescue assessment on the list.
The NCUA sued investment bank Goldman Sachs last week, seeking damages of more than $491 million and alleging misrepresentations by the firm when selling mortgage-backed securities to U.S Central and Western Corporate credit unions.