WASHINGTON (2/13/14)--Credit Union National Association President/CEO Bill Cheney called it "welcome news for credit unions" when the National Credit Union Administration confirmed Wednesday that there would be no Temporary Corporate Credit Union Stabilization Fund (TCCUSF) assessment charged in 2014.
"As CUNA has argued since last summer, the need for continued assessments has been unnecessary for some time. With the improved performance of the NCUA's legacy assets, we are glad that the NCUA agrees that stabilization fund assessments should end after the 2013 payment," Cheney remarked.
The agency also went so far to say that credit unions are much less likely to be charged another TCCUSF assessment going forward.
These are outcomes CUNA has been pushing for with NCUA.
The agency said the positive TCCUSF news is the result of a $1.4 billion settlement with JP Morgan and the continued improvement in the performance of the legacy assets underlying the NCUA Guaranteed Notes program.
"Our legal team is diligently pursuing our claims against the Wall Street securities firms who sold faulty securities to five corporate credit unions, causing them to fail and triggering a crisis in the system," NCUA Chair Debbie Matz said in a release. "That hard work is paying off, and we will continue our efforts to hold accountable those who helped precipitate the crisis."
Credit unions have paid $4.8 billion in TCCUSF assessments since the fund was established. The projected net remaining assessments over the life of the TCCUSF, based on estimates from the second quarter of 2013, now range from -$1.9 billion to -$0.4 billion.
CUNA Chief Economist Bill Hampel said future TCCUSF rebates are now very likely.
For more on the TCCUSF announcement, use the resource link.