Tuesday, February 21, 2012

NCUA's 2011 Section 208 Assistance Already Partially Impaired

The National Credit Union Administration (NCUA) last week released its 2011 audited financial report for the National Credit Union Share Insurance Fund (NCUSIF).

Footnote 5 shows that the Section 208 net worth assistance of $80 million that NCUA provided two credit unions (A.E.A. FCU of Yuma, AZ and Texans CU of Richardson, TX) is already partially impaired. According to Footnote 5,

"As of December 31, 2011, the NCUSIF had two outstanding capital notes due from insured credit unions. The capital note receivables totaled $80.0 million and the related allowance for loss was $10.0 million, for a net capital note receivable of $70.0 million as of December 31, 2011."

Additional impairment charges are likely with this $80 million in NCUSIF capital notes.

This should make the 2012 audited financials a must read.

Audited Financial Statements.

1 comment:

  1. So the $80M in NCUA assistance is partially impaired. And the NCUA is 100% impaired. At least they are consistent - both are impaired. What else might one expect from the NCUA? It is a federal regulatory agency. Occasionally, federal agencies, like the NCUA, make mistakes. It happens all the time at the NCUA.



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