Tuesday, July 10, 2012
Stabilization Fund's Borrowings from Treasury to Address Corporate CU Fiasco
The Temporary Corporate Credit Union Stabilization Fund has borrowed $9.31 billion during its history to handle the resolution of the five failed corporate credit unions. The NCUA is reporting that $5.81 billion of the borrowings has been repaid and $14.69 million in interest has been paid to the Treasury. The interest rate on borrowings is 0.165 percent as of December 31, 2011.
Credit unions owe treasury 3 plus bill more and still owe on debt issued to investors of NGNs and the notes issued when wescorp was conserved but NCUA loss projection is WHAT?
ReplyDeleteIf the corporate CU event was a "fiasco," then what is the term for the "Penn Square/Continental Illinois failures?" the $150 billion bailout of the S&L industry? the TARP bailout? the current troubles at JP Morgan Chase?
ReplyDeleteFor those, I might use a phrase like "world class screw ups!"
If credit unions never cost the tax payers a single penny how about the favorable interest rate on the loan? Where does the peon taxpayer get a 0.165% loan? Sign me up. That is sweet! Seems like somewhere along the way the U.S. tax payer is providing a nice subsidy to the not for profit credit union community by way of the U.S. Treasury. I want some of that favorable interest rate.
ReplyDeleteHey, that's a real good response. As a credit union CEO, I don't have to explain the penn square problem, I have to explain the corporate problem....and why it's costing us so much money. Member money. Hmm.
ReplyDeleteI seem to recall being responsible for credit union stuff not bank stuff.
You feel better about assessments cause banks had problems?
Good for you. Must be a trade association person, they don't take any responsibility.