Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

Washington
Final NCUA NGN offering nets 2.2B
ALEXANDRIA, Va. (6/17/11)--The National Credit Union Administration (NCUA) sale of NCUA Guaranteed Notes (NGNs), which was completed this week, netted a total of $50.5 billion to fund the resolution of troubled corporate credit unions. The first of the agency’s 13 NGN offerings was closed in October of 2010 and brought in around $3.8 billion in income. The agency announced yesterday that the last of the offerings was released on June 6 and brought in $2.21 billion in proceeds. The NGNs were comprised of $50 billion of legacy assets held by the NCUA. Those legacy assets are primarily of private label, residential mortgage-backed securities that were significantly devalued during the turmoil in the overall mortgage market. A total of $35 billion of those assets were reissued as NGNs and sold on the open market. NCUA Chairman Debbie Matz said that the securitization program “was hugely successful in helping to manage the problem assets of failed corporate credit unions. It was a cost-effective method for funding the legacy assets owned by the corporate credit unions, ensuring the system as a whole endured.” The NCUA amended its definition of low-risk assets to allow credit unions to invest in NGNs, and these investments received a zero risk weight due to their federal government backing. For the full NCUA release, use the resource link.


RSS print
News Now LiveWire
Va. #creditunion league breaks ground on new HQ #NewsNow http://t.co/Cn24i1hOHV
25 minutes ago
NJ Lt Gov Kim Guadagno shares her #creditunion story at @NJCUL convention #NewsNow http://t.co/2B7QiuUK9p
51 minutes ago
#NewsNow: 2013 mortgage data shows 14.8 mil applications, 2.8 mil purchases and more. http://t.co/DId2VFrsEr
1 hours ago
The story of @allegiancecu's Florence Rogers is captured in expanded OklaCity bombing memorial via @WSJLife http://t.co/CmF0xfPcJ4
2 hours ago
.@VACUL breaks ground for new HQ in Richmond #NewsNow http://t.co/cOC0rqqJ9o
2 hours ago