NAFCU commends NCUA’s record recovery of $1.4 billion in JPMorgan settlement
WASHINGTON, DC (November 19, 2013) — National Association of Federal Credit Unions (NAFCU) President and CEO Dan Berger today hailed the National Credit Union Administration’s (NCUA) announcement today that the agency will receive $1.417 billion from JPMorgan Chase in recompense for losses to corporate credit unions. Berger said this comes close to covering all remaining corporate stabilization costs and if possible, NCUA should halt stabilization assessments on insured credit unions.
“We applaud NCUA’s persistence in seeking recoveries on the sale of faulty securities that led to the downfall of five corporate credit unions,” said Berger. “Today’s announcement by NCUA is a momentous one, representing the first significant financial relief for credit unions that have been operating under the weight of corporate stabilization since 2009. We appreciate NCUA’s dogged pursuit of the recoveries it has made thus far, and we strongly encourage the agency to take a close look at these recoveries and consider returning any excess received to insured credit unions.”
He added, “This will be an enormous boost for many Main Street credit unions that were struggling under the continuing burden of corporate stabilization assessments. When credit unions can continue to serve their members with low-cost, low-fee products and services, we all win.”
NCUA is receiving the funds as part of a settlement involving JPMorgan Chase for a wide range of activities undertaken during the housing downturn, including the sale to corporate credit unions of faulty MBS by Washington Mutual, which JPMorgan Chase acquired in 2008.
Before today, NCUA had recovered $335 million from parties that sold bad MBS to the corporates.
The National Association of Federal Credit Unions is the only national organization that focuses exclusively on federal issues affecting credit unions, representing its members before the federal government and the public.