NCUA Releases New Corporate Assessment Estimates Online (Misc News: June 29, 2012)
The NCUA has released new estimates of the projected long-term total assessments for the Temporary Corporate Credit Union Stabilization Fund.
The information was made available through an update and expansion of the NCUA website aimed at increasing public awareness of the costs of the Corporate System Resolution and the performance of the NCUA Guaranteed Notes Program.
The newly released analysis shows that the estimated range of future Stabilization Fund assessments narrowed between June 30, 2011, and Dec. 31, 2011. NCUA uses BlackRock, an independent securities valuation firm, to project the future performance of the legacy assets in the NGNs, a key component of this analysis.
Under the updated estimates, credit unions will be responsible for paying between $2.7 billion and $6.0 billion in future assessments to cover anticipated corporate losses during the life of the Stabilization Fund, which expires in 2021. A previous estimate, issued six months ago, had projected a net range of future assessments between $1.9 billion and $6.2 billion.
Although NCUA has updated the range of the Stabilization Fund loss estimates, the projected range of 2012 Stabilization Fund assessments—between 8 and 11 basis points of insured shares—remains the same.
The NCUA Board anticipates setting the 2012 Stabilization Fund assessment at the open board meeting scheduled for July 24.
The updated information can be viewed on the NCUA website by clicking here.