The Resolution Costs are based in large part on a range of estimated losses on the Legacy Assets as well as other expenses relating to resolving the liquidated corporate credit unions. The chart below illustrates the total projected Resolution Costs to the credit union system and sources of payments of those costs. The majority of projected Resolution Costs are those associated with the Legacy Assets. Other incremental costs include losses on the sale of other assets, bridge corporate transition expenses, borrowing costs, and liquidation expenses. The sources of payment include member capital, actual assessments to date, future assessments to credit unions, and recoveries received as a result of legal action.
Resolution Costs and Net Remaining Assessments (in Billions)
The range of remaining assessments (column e) is affected both by evolving loss estimates and the assessments collected to date at each point in time.
Negative assessments represent projected refunds of both assessments paid to date (column d) and credit union member capital in corporates (column b).
NCUA has received more than $1.75 billion in gross recoveries through December 2014 through pursuit of legal claims against securities underwriters. Net proceeds from recoveries will reduce future projected ranges of remaining assessments.
Further details related to the assessment range can be found at the links below. See NCUA's Corporate System Resolution Costs and NGN Program websites for the most up-to-date information.
Details related to the individual Legacy Assets can be found at NCUA’s Corporate Credit Union FOIA Requests page via the following link: http://www.ncua.gov/Resources/FOIA/Pages/FOIACorporate.aspx.