NCUA Corporate Stabilization Program

The NCUA Corporate Stabilization Program was created on January 28, 2009,[1] in response to investment losses incurred at U.S. Central Credit Union,[2] which is the Corporate Credit Unions' corporate credit union.

The National Credit Union Administration (NCUA) is an autonomous agency of the United States federal government, and is responsible for regulating and insuring all federally insured credit unions in the United States.

The NCUA's plan calls for all federally insured natural-person credit unions in the U.S. to pay an increased insurance premium to the National Credit Union Share Insurance Fund (NCUSIF) in 2009 to make up for the investment losses at U.S. Central, to which the NCUSIF has written a $1 billion capital note.[3] However, NCUA has provided no assurances that the capital losses of the corporate credit unions to be covered through the planned assessment in 2009 will be adequate to cover eventual bad debt losses.

See also

References

  1. ↑ NCUA Press Release, January 28, 2009
  2. ↑ CU Times article U.S. Central Earns an F from Fitch
  3. ↑ Boston Globe Paying a Giant's Price, February 13, 2009

External links


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