Between December and July, the upper end of remaining assessments associated with the Temporary Corporate Credit Union Stabilization Fund fell by $2.3 billion, resulting from a $1.6 billion decrease in expected costs and a $700 million assessment collected in October.
Total future assessments are expected to be no higher than $1.6 billion, down from the projected range of $1.6 billion to $3.9 billion at the end of 2012.
The National Credit Union Administration announced last week that the agency does not anticipate an assessment for the stabilization fund—the result of its $1.4 billion settlement with JPMorgan Chase, which will be incorporated into future assessment range calculations.
“A great deal of disciplined work and careful planning has kept the Corporate Resolution on-track, and the new estimates are very good news,” NCUA Board Chairman Debbie Matz said. “Our continued recoveries from Wall Street firms responsible for the corporate crisis, now totaling more than $1.75 billion, an improving economy and NCUA’s continuing efforts to effectively manage losses are helping reduce future credit union assessments.”
NCUA still has 16 pending lawsuits against other securities underwriters seeking recovery of losses in an attempt to limit the assessments federally insured credit unions have to pay over time through the stabilization fund.