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Stabilization Fund

May 20, 2010 Alexandria, Va.– National Credit Union Administration Chairman
Debbie Matz today marked the first anniversary of the creation of the Temporary
Corporate Credit Union Stabilization Fund (TCCUSF) by noting its success in
helping credit unions manage the costs stemming from corporate credit union
losses, and urging continuing progress in reforming the system.
“Tomorrow marks the first anniversary of President Obama’s signing of the law
that created the Corporate Stabilization Fund,” Chairman Matz stated as she
opened the NCUA Board’s May 20 meeting. “This milestone marks a fitting
moment to recognize how much has been accomplished since the fund was
established. The Stabilization Fund has played an important role in helping
credit unions better manage the costs associated with the corporate crisis.
Moreover, the fund has provided both NCUA and the credit union industry with
greater flexibility in moving toward a resolution of the corporates’ problems.
Chairman Matz reflected on the actions that led to creation of the Stabilization
Fund. “Intense pressure on the credit union industry called for quick and decisive
action by the NCUA Board. Then-Chairman Fryzel, then-Vice Chairman Rodney
Hood, and Board Member Hyland recognized the urgency of the situation – and,
even more importantly, they envisioned solutions. By devising the Stabilization
Fund, and by securing its approval in record time, NCUA took a reasoned and
responsible course of action that has clearly worked. Its continuing success will
ease the way toward our next phase of dealing with the corporate situation. I
commend the NCUA Board and staff for their diligence, their vision and their
perseverance. These qualities have defined our agency’s efforts to this point,
and will continue to serve the credit union industry well in the months and years
National Credit Union Administration
1775 Duke Street
Alexandria, VA 22314-3428
Media Contact: NCUA Office of
Public & Congressional Affairs
Phone: (703) 518-6330
Email: pacamail@ncua.gov
Matz’s remarks at the opening of the NCUA Board meeting led to a detailed
discussion of the separate funding process for both the TCCUSF, which was set
up to absorb losses related to corporate credit union investments, and the
National Credit Union Share Insurance Fund (NCUSIF), the federal insurance
fund that stands behind consumer deposits. That discussion was the latest effort
by NCUA to maintain transparency regarding the roles, costs and functions of the
two funds.
The NCUA Board is responsible for assessing credit unions the amounts
necessary to repay the Treasury on behalf of the TCCUSF, and for maintaining a
strong equity ratio on behalf of the NCUSIF.
As a result of the discussion led by Chairman Matz, NCUA staff detailed the
analyses being conducted to recommend specific assessment amounts to the
NCUA Board. Deputy Executive Director Larry Fazio plans to recommend the
TCCUSF assessment amount this summer. Examination & Insurance Director
Melinda Love plans to recommend the NCUSIF assessment amount this fall.
To see the factors that will determine each assessment payment, for the NCUSIF
Assessment Analysis go to http://www.ncua.gov/news/press_releases/2010/5-
20-10ShareInsuranceFundAssessmentAnalysis.pdf, and for the TCCUSF
Assessment Analysis go to http://www.ncua.gov/news/press_releases/2010/5-
NCUA is the independent federal agency that regulates, charters and supervises federal
credit unions. With the backing of the full faith and credit of the U.S. government, NCUA
operates and manages the National Credit Union Share Insurance Fund, insuring the
deposits of nearly 90 million account holders in all federal credit unions and the majority
of state-chartered credit unions.

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