NCUA to Distribute $569 Million Under Corporate System Resolution Program
The National Credit Union Administration, in its role as liquidating agent, announced a $359.2 million distribution to more than 1,000 membership capital shareholders of the former Members United, Constitution, and U.S. Central corporate credit unions. NCUA will also distribute $209.8 million in dividends to more than 1,100 shareholders of Southwest Corporate. NCUA completed capital distributions to Southwest Corporate capital holders last year.
“This latest distribution is another important milestone in the successful Corporate System Resolution Program,” Chairman Todd M. Harper said. “As we wind down the remaining asset management estates, we will continue to minimize costs and maximize returns. In doing so, we will fulfill our fiduciary responsibilities as both the conservator and liquidator of the failed corporate credit unions and return additional funds to capital holders.”
As liquidating agent of the former corporate credit unions’ asset management estates, the NCUA has previously made three rounds of distributions. In 2020 and 2021, capital holders of Southwest, Members United, and U.S. Central received distributions. Member capital shareholders of Constitution corporate credit union will also receive the latest round of distributions, scheduled to occur before the end of March 31, 2022. With this fourth distribution, the NCUA will have returned over $1.8 billion to former membership capital shareholders and $209.8 million in dividends to shareholders.
The Corporate System Resolution Program (https://www.ncua.gov/support-services/corporate-system-resolution) is a landmark initiative established by the NCUA Board to stabilize, resolve, and reform the corporate credit union system in the wake of the 2008 financial crisis. The program allowed the credit union system to absorb the failures of U.S. Central, Western, Southwest, Members United, and Constitution corporate credit unions over time.
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