Year-End Positive Net Position Reached for the First Time
ALEXANDRIA, Va. (March 16, 2015) – The Temporary Corporate Credit Union Stabilization Fund has received a sixth consecutive clean audit opinion, the National Credit Union Administration announced today.
During 2014, the Stabilization Fund’s financial condition remained stable, maintaining sufficient available liquidity to meet its obligations. This was the first year in which the Stabilization Fund had a positive net position. NCUA’s Chief Financial Officer will provide a detailed report at the scheduled March 19 open Board meeting.
“The Stabilization Fund has saved credit unions from $40 billion in potential losses since 2009, and this sixth consecutive clean audit is a reminder of how well this important asset is being managed,” NCUA Board Chairman Debbie Matz said. “NCUA remains committed to prudent, effective and transparent management for the Stabilization Fund. If current trends continue, the agency does not expect to charge credit unions assessments for the Stabilization Fund in the future.”
KPMG LLP, the independent firm that audits the Stabilization Fund’s financial statements, issued an unmodified audit opinion with no reportable findings. The Office of the Inspector General released the Stabilization Fund’s 2014 audited financial statements today as well. The Inspector General’s report and the Stabilization Fund’s financial statements are available online here.
Managed by the NCUA Board, the Stabilization Fund is a revolving fund in the U.S. Treasury. The Stabilization Fund gives NCUA the necessary flexibility to manage costs to the credit union system resulting from losses on troubled mortgage-backed securities purchased by five failed corporate credit unions that NCUA liquidated during the financial crisis. It is currently scheduled to close in 2021.
With the 2014 Stabilization Fund audit complete, NCUA will soon update its two public website sections detailing Corporate System Resolution Costs and NCUA Guaranteed Notes Program information through the final quarter of 2014. NCUA will produce updated questions and answers covering final 2014 data on the total actual losses and implied write-downs on the failed corporates’ legacy assets and the most recent estimated loss projection ranges.
NCUA is the independent federal agency created by the U.S. Congress to regulate, charter and supervise federal credit unions. With the backing of the full faith and credit of the United States, NCUA operates and manages the National Credit Union Share
Insurance Fund, insuring the deposits of account holders in all federal credit unions and the overwhelming majority of
state-chartered credit unions. At MyCreditUnion.gov, NCUA also educates the public on consumer protection and financial literacy issues.