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NEW New corporate resolution NGN sites available at NCUA
ALEXANDRIA, Va. (12/28/11 UPDATE 1:24 ET p.m.)--Just one day after making public the just-released clean audit report of the Temporary Corporate Credit Union Stabilization Fund (TCCUSF), the National Credit Union Administration (NCUA) announced its unveiling of two new webs pages: One on the NCUA Guaranteed Notes (NGN) program, the other on corporate  credit union system resolution costs.
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Featured information on the new NGN Program and Corporate System Resolution sites includes:

  • Background of the NGN Program;
  • Characteristics of each NGN transaction;
  • Profiles of the legacy assets;
  • Ongoing performance of the NGNs and legacy assets;
  • Recent guidance from the NCUA Board on projected 2012 Stabilization Fund assessments;
  • Current loss projection ranges on the legacy assets; and
  • A glossary of frequently used terms.
 

The NCUA said they consider the two new web resources to be "works in progress," meaning that they will continue to be built and bolstered with new or additional information. Updates will occur regularly, the agency claims, and the sites are intended to add clarity to the complex subjects of the NGN program, as well as transparency for the resolution costs associated with the resolution of the corporate credit union system's problems.

"NCUA is committed to ensuring full transparency throughout the Corporate System Resolution," said NCUA Chairman Debbie Matz in a release. "These useful new website tools will assist stakeholders in understanding how NCUA's ongoing initiatives are mitigating losses from the legacy assets, spreading out loss ranges over time, and reducing assessments paid by credit unions."

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Not long ago--at the Dec. 15 NCUA open board meeting, in fact--the agency approved the NGN Program's 2012 budget in the amount of $7,710,000. The budget will provide funding for the NGN Program's administrative costs such as security valuation, accounting, and reporting costs.

The guaranteed notes program was created in 2010, and was comprised of $50 billion of legacy assets gathered from the accounts of corporate credit unions under NCUA conservatorship. The NGNs are sold on the open market and are permissible investments for credit unions. They have a zero risk weight from the Securities and Exchange Commission.

The websites are available at www.NCUA.gov by clicking on the "Corporate System Resolution Costs" and "NGN Program Information" links under "Credit Union Resources and Information."


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