NCUA to Distribute $865.5 Million as Part of Corporate Resolution Process

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Read more at the Washington CU Daily

The National Credit Union Administration announced Monday that it will distribute $865.5 million to 1,800 capital account holders that helped bail out corporate credit unions following the 2008 financial crisis.

The funds will go to account holders of the former Members United, Southwest Corporate and U.S. Central corporate credit unions. The agency also announced the end of its guaranteed notes program and said it will continue to implement a plan to orderly liquidate the remaining post-securitized assets and make additional distributions when possible.

“This third round of distributions is the largest to date and another milestone in the NCUA’s successful management of the Corporate System Resolution Program,” NCUA Chairman Todd Harper said. “As we wind down the remaining corporate credit union asset management estates, the NCUA will continue to conduct an orderly liquidation of the remaining assets and aggressively pursue legal recoveries while optimizing returns.

The program allowed the credit union system to absorb the failures of U.S. Central, WesCorp, Southwest, Members United, and Constitution corporate credit unions over time.

Harper urged credit unions receiving money from the distributions to use the funds to support families suffering from hardships resulting from the COVID-19 pandemic.

The NCUA is the liquidating agent of the former corporate credit unions; the agency has made two previous distributions. With this distribution, the NCUA said that it will have returned more than $1.3 billion to former membership capital account holders.

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  • A veteran Washington reporter, David spent four years as Washington correspondent for the Credit Union Times before starting Washington Credit Union Daily. He has spent his career writing and editing for many of the capital’s leading publications, including CongressDaily, National Journal magazine and Congressional Quarterly Weekly. He was part of a team that won a 2005 National Headliner Award for a special issue of National Journal on “The State of Congress.” He holds a B.A. in political science from The George Washington University and an M.A. in journalism from Indiana University.

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