news.cuna.org/articles/109911-tccusf-ends-2015-with-positive-5404m-net-position

TCCUSF ends 2015 with positive $540.4M net position

March 25, 2016

ALEXANDRIA, Va. (3/25/16)--The Temporary Corporate Credit Union Stabilization Fund (TCCUSF) ended 2015 with a positive $540.4 million net position, an increase of $301.9 million during 2015. National Credit Union Administration (NCUA) Chair Debbie Matz called the year-end numbers good news.

“We can once again reassure stakeholders that we do not project any more stabilization fund assessments,” Matz said. “We also can assure everyone that we will continue to pursue legal recoveries from Wall Street firms that contributed to the corporate crisis. We have already recovered more than $2.4 billion, and we anticipate more recoveries in the future.”

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Click image to enlarge. Temporary Corporate Credit Union Stabilization Fund revenue and expenses as of Dec. 31, 2015. (NCUA Graphic)

Outstanding borrowings from the U.S. Treasury decreased to $1.7 billion at the end of 2015 from $2.6 billion at the end of 2014. Interest on agency borrowings from the U.S. Treasury was $5.1 million for the year, and administrative expenses were $4.4 million.

NCUA Chief Financial Officer Rendell Jones said that while the stabilization fund continues to have a positive net position, no funds are available to provide federally insured credit unions with an immediate rebate. The NCUA must first repay outstanding borrowings from the U.S. Treasury.

Future changes in the economy or the performance of the legacy assets, which secure the NCUA Guaranteed Notes, are likely to change the value of the assets NCUA and the TCCUSF can eventually access at the end of the Guaranteed Notes program, Jones added.

The TCCUSF also recently received its seventh consecutive unmodified, or “clean,” audit opinion from KPMG LLP, the independent auditing firm contracted by NCUA.

The stabilization fund is scheduled to expire in 2021.