NCUA to Make Distribution as Part of Corporate Resolution Program
Initiative designed to stabilize and overhaul corporate credit union system in the wake of 2008 financial crisis.
The NCUA announced Monday that in its role of liquidating agent, it is distributing $313 million to more than 400 membership and paid in capital shareholders of the Members United, Constitution, and U.S. Central corporate credit unions.
The agency also will distribute $82 million in dividends to more than 1,000 shareholders of Southwest Corporate.
NCUA Chairman Todd Harper
“The NCUA has reached another milestone in winding down the remaining asset management estates under the successful Corporate System Resolution Program,” board Chairman Todd Harper said. “Thanks to the diligent efforts of the NCUA team over more than a decade, we continue to fulfill our fiduciary responsibility to return these funds to capital holders.”
As the liquidating agent of the former corporate credit unions’ asset management estates, the NCUA has previously made four distributions.
The current distribution will be made before the end of September and with it the NCUA will have returned more than $2.6 billion to former membership and paid-in capital shareholders and almost $292 million in dividends to shareholders.
The Corporate Resolution Program is an initiative established by the agency to stabilize, resolve, and change the corporate credit union system following 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.