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Agency chairman encourages recipients to aid members in financial trouble, extend access to services in underserved areas.
The NCUA announced Thursday that it will return $178.2 million to shareholders of corporate credit unions as part of the Corporate System Resolution Program.
The agency said that this month, more than 100 membership and paid-in capital shareholders of the former Constitution and U.S. Central corporate credit unions will share $109.6 million. The agency will further distribute $68.6 million in dividends to more than 2,500 Members United and Southwest Corporate shareholders.
“This represents the sixth multimillion-dollar distribution as part of the successful Corporate System Resolution Program and is another example of the NCUA fulfilling its fiduciary responsibility to return additional funds to capital holders,” NCUA Chairman Todd Harper said. “As we wind down the remaining asset management estates, we will continue to minimize costs and maximize returns.”
He urged recipients of the funds to use the money to support credit union members experiencing financial problems due to rising interest rates and inflationary pressure. The chairman also recommended that the funds be used to increase access to financial services, particularly in underserved areas.
More About the Program
With this new distribution, the NCUA will have returned more than $2.7 billion to former membership and paid-in capital shareholders, and more than $360 million in dividends to shareholders.
Harper noted that the NCUA was “the first federal financial institution regulator to file suit against the Wall Street securities firms that sold investments in faulty residential mortgage-backed securities.”
Created as a result of the 2008 financial crisis, the program allowed the credit union system to absorb the failures of U.S. Central, Western, Southwest, Members United, and Constitution corporate credit unions over time.
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