The National Credit Union Administration announced Monday that it will distribute $865.5 million to 1,800 capital account holders that helped bail out corporate credit unions following the 2008 financial crisis.
The funds will go to account holders of the former Members United, Southwest Corporate and U.S. Central corporate credit unions. The agency also announced the end of its guaranteed notes program and said it will continue to implement a plan to orderly liquidate the remaining post-securitized assets and make additional 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,” NCUA Chairman Todd Harper said. “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.
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.
Harper urged credit unions receiving money from the distributions to use the funds to support families suffering from hardships resulting from the COVID-19 pandemic.
The NCUA is the liquidating agent of the former corporate credit unions; the agency has made two previous distributions. With this distribution, the NCUA said that it will have returned more than $1.3 billion to former membership capital account holders.