Removing Barriers Blog

NCUA Recovers Additional $400 Million from Credit Suisse
Posted May 04, 2017 by CUNA Advocacy

NCUA announced the recovery of $400 Million from Credit Suisse. This is in addition to the $445 Million announced on Monday in a recovery from UBS. This brings the total recoveries on behalf of five failed corporate credit unions that purchased residential mortgage-backed securities to $5.1 Billion. The net proceeds from these recoveries will be used to pay claims against the five failed corporate credit unions, including those of the Temporary Corporate Credit Union Stabilization Fund.

These recoveries are good news for credit unions. CUNA will continue to analyze what this might mean for the potential merger of the Stabilization Fund and the Share Insurance Fund and the prospects for rebates. The NCUA is in the process of exploring the feasibility as well. Further, we will look at the potential impact that a merger, or prospect of a merger might have on eliminating the necessity of any share insurance premium this year.

A copy of the NCUA press release can be found here.