American Mutual Share Insurance Corporation (ASI) announced a Special Premium Assessment for 2011 of 15 basis points on total shares (deposits) as of June 30, 2011. The premium will be assessed of all primary insured credit unions of record on September 30, 2011, subject to final regulatory approvals.
The premium assessment does not apply to excess share insurance policyholder credit unions insured by Excess Share Insurance Corporation (ESI) or ASI.
ASI stated that the special premium assessment was due to lower yields on its government bond portfolio and weaknesses at a small number of member credit unions in select markets, which have required a more aggressive funding of loss reserves by ASI.
Read the press release.
Not so bad. Having the credit union private deposit insurer ask for a special premium, because the current yield on investments is low, seems reasonable.
ReplyDeleteReally bad. Having the banks’ FDIC government-backed deposit insurer ask the banks that hold 80% of the nation’s deposits to provide a plan for their own “orderly resolution”, or potential failure.
Big banks would gladly give up 15bp and not write a “living will”.
The world of banking has certainly become a PR nightmare.