NCUA Chief Financial Officer, Mary Ann Woodson, stated:
"On July 27 NCUA borrowed $3.5 billion from Treasury to satisfy the balance of the bridge note payable and other miscellaneous obligations which were paid on October 1, excuse me, which were paid on August 1, 2011."
Mary Ann Woodson also acknowledges that NCUA anticipates borrowing a total of $5.5 billion from the Treasury of its $6 billion line of credit to meet near-term cash flow needs.
While credit unions will ultimately repay this borrowing, tax-exempt credit unions are receiving valuable assistance from the U.S. Treasury and ultimately the American taxpayer.
This borrowing does not count other assistance that came from the Treasury. For example, Treasury lent funds to the Central Liquidity Facility that were funneled to two corporate credit unions to keep them afloat and prevent a systemic collapse of the credit union industry.
So whether credit unions want to recognize it or not, they were bailed out.