NCUA to distribute $865.5 million under Corporate System Resolution Program
ALEXANDRIA, VA (June 28, 2021) — The National Credit Union Administration, in its role as liquidating agent, today announced an $865.5 million distribution to the 1,800 membership capital account holders of the former Members United, Southwest Corporate, and U.S. Central corporate credit unions. The agency also announced the end of the NCUA Guaranteed Notes program and will continue to effectuate its plan to orderly liquidate the remaining post-securitized assets and make further distributions when possible.
“This third round of distributions is the largest to date and another milestone in the NCUA’s successful management of the Corporate System Resolution Program,” said NCUA Chairman Todd M. Harper. “As we wind down the remaining corporate credit union asset management estates, the NCUA will continue to conduct an orderly liquidation of the remaining assets and aggressively pursue legal recoveries while optimizing returns.
“Credit unions receiving money from these distributions are encouraged to use the funds to support serving the millions of credit union members experiencing economic hardships because of the COVID-19 pandemic, especially to people of color and those in low-income areas disproportionately affected by the pandemic.”
As liquidating agent of the former corporate credit unions’ asset management estates, the NCUA to date has previously made two rounds of distributions. The first distribution was made to the former capital holders of Southwest Corporate in July 2020. The second distribution was made to the former capital holders of Southwest Corporate, Members United, and U.S. Central in April of this year. These former capital holders will also receive the latest round of distributions, scheduled to occur before the end of September 2021. With this third distribution, the NCUA will have returned more than $1.3 billion to former membership capital account holders.
The Corporate System Resolution Program is a landmark initiative established by the NCUA Board to stabilize, resolve, and reform the corporate credit union system in the wake of the 2008 financial crisis. The program allowed the credit union system to absorb the failures of U.S. Central, WesCorp, Southwest, Members United, and Constitution corporate credit unions over time.
Information on the Corporate System Resolution Program, including projections for the Corporate Asset Management Estates Recoveries and Claims and the process for determining when distributions are made to member capital account holders, can be found on the NCUA’s website.
About National Credit Union Administration (NCUA)
The NCUA is the independent federal agency created by the U.S. Congress to regulate, charter and supervise federal credit unions. With the backing of the full faith and credit of the United States, the NCUA operates and manages the National Credit Union Share Insurance Fund, insuring the deposits of more than 124 million account holders in all federal credit unions and the overwhelming majority of state-chartered credit unions. The NCUA also protects consumers and educates the public on consumer protection and financial literacy issues.