STABILIZATION FUND EARNS CLEAN 2011 AUDIT (FROM PAGE 1)
During the year the asset management estates received
interest income and proceeds from the sale of NCUA
Guaranteed Notes (NGNs), as well as legal settlements from
Wall Street securities firms. The asset management estates are
the remaining assets and liabilities of the five failed corporate
For liabilities, the Stabilization Fund borrowed $3.5 billion
from the U.S. Treasury during 2011. NCUA applied these
borrowings plus other funds received from the issuance of
NCUA Guaranteed Notes and Stabilization Fund
assessments to pay off $18.2 billion in Promissory Notes.
These transactions, partially offset by asset recoveries,
resulted in Insurance and Guarantee Program Liabilities
dropping to $2.9 billion.
The auditors’ report did not disclose any reportable conditions
on internal controls over financial reporting and on compliance
with laws and regulations. As a result of improvements in
internal controls, the 2011 audited financial statements were
completed six months earlier than the 2010 statements.
Shortly after releasing the 2011 statements, NCUA updated and
expanded the websites that increase public awareness of the
costs of the Corporate System Resolution and the performance
of the NGN Program. These webpages convey complex
information about both programs in easy-to-understand terms.
The webpages now incorporate updated and expanded
material, such as:
n Background on NCUA’s borrowings from and payments
to the U.S. Treasury associated with the Stabilization Fund;
n Graphics on the Stabilization Fund’s Net Position,
compared to anticipated remaining assessments;
n Information on the projected performance of the NGN
Program’s legacy assets, which are the distressed
investment securities from the five failed corporate credit
n Updated estimates of projected corporate losses.
NCUA will continue to publish updated information on the
Corporate System Resolution and the NGN Program semi-annually over the life of the Stabilization Fund. The webpages
are available at www.ncua.gov by going to the tab on “Credit
Union Resources and Information” and then clicking on the
links for “Corporate System Resolution Costs” and “NGN
The Stabilization Fund’s full audited financial statements can
be found at http://go.usa.gov/vJu.
ONE SIZE FITS ALL—NOT ANYMORE (FROM PAGE 4)
NCUA recently has begun to take a hard look at how we
examine credit unions, so we can better use our resources
to focus on those with the greatest risk. That reassessment
will help us do a better job, as well as provide regulatory
relief for credit unions that may not need the same type
The idea of revisiting one size fits all regs with a goal to tailor
regulation to “best fit” the size of the credit union is not an
easy task. It will take considerable time and effort. But just
maybe it is time to get that task started.
After all, I think we can agree both Becker and Cheney would
look better in something that fits them individually.