Tuesday, January 24, 2017

12 CDCI CUs Partially or Fully Repurchase Securities

Twelve credit unions repurchased either fully or partially outstanding securities owned by U.S. Department of the Treasury (Treasury) under the Troubled Asset Relief Program (TARP) Community Development Capital Initiative (CDCI) in 2016.

On August 1, 2016, Treasury, as part of its effort to wind down the TARP, began offering participating CDCI institutions an opportunity to repurchase early their outstanding securities owned by Treasury at fair value. On December 9, the window for CDCI institutions to submit proposals closed under the early repurchase option.

Under the early repurchase program, the fair value of the securities repurchased was less than the amount borrowed by thee credit unions.

Below is the list of credit unions that repurchased partially or fully their securities along with the amount paid and the amount borrowed.

As of the end of 2016, 21 credit unions reported outstanding securities owned by the Treasury through its CDCI program. Fairfax County Federal Credit Union (Fairfax, VA) owed the most to Treasury at $8.04 million, followed by Hope Federal Credit Union (Jackson, MS) at $4.52 million.

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