Understanding the Corporate Crisis
A Message From the Chairman
Welcome to a series of presentations to help you better understand the current situation with corporate credit unions, including the corporate resolution strategy that was unveiled by the NCUA Board on September 24, 2010. I recognize that the complexities of this crisis have been difficult to grasp – even for those who are very familiar with the internal workings of the credit union system. NCUA has designed this series to provide you with a broad overview, in simple terms, of all aspects of corporate credit unions – including the resolution of impaired securities (“legacy assets”) that have been a significant drain on the credit union system.
Track 1 discusses the history of corporate credit unions and the services they have provided to consumer credit unions for the past 40 years. Track 2 describes the events that led several corporate credit unions to discover severely distressed assets on their balance sheets, and the resulting impact on consumer credit unions. Track 3 describes the actions that NCUA implemented to help stabilize the corporates. Track 4 describes the corporate resolution strategy implemented by the NCUA Board to deal with legacy assets. I encourage board members to watch these presentations together and to discuss them as a group, along with your credit union’s management team.
The corporate credit union crisis has posed significant challenges for the nation’s entire credit union system. The solution chosen by the NCUA Board will ensure continued financial services to the more than 90 million consumers who are served by our nation’s credit unions. NCUA will be hosting numerous town hall meetings nationwide during the month of October to explain the details of our plan and to answer your questions. Should you or your management team be interested in attending one of these sessions, you will find a link to the town hall schedule including dates and locations below.
THESE ITEMS ARE BEING PROVIDED FOR INFORMATION PURPOSES ONLY, AND DO NOT CONSTITUTE AN OFFER TO SELL, OR A SOLICITATION OF AN OFFER TO BUY, SECURITIES. THEY DO NOT PURPORT TO BE ALL-INCLUSIVE OR TO CONTAIN ALL OF THE INFORMATION THAT A PROSPECTIVE INVESTOR MAY REQUIRE TO MAKE A FULL ANALYSIS OF THE SECURITIES TRANSACTIONS REFERENCED HEREIN. THE INFORMATION CONTAINED HEREIN REGARDING SECURITIES TRANSACTIONS WILL BE SUPERSEDED, AND IS QUALIFIED IN ITS ENTIRETY, BY INFORMATION CONTAINED IN THE DEFINITIVE OFFERING DOCUMENTS FOR THE SECURITIES TRANSACTIONS. OFFERS OF SECURITIES WILL BE MADE ONLY THROUGH THE DELIVERY OF DEFINITIVE OFFERING DOCUMENTS FOR THE SECURITIES TRANSACTIONS AND IN ACCORDANCE WITH APPLICABLE SECURITIES LAWS.