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)
| Quarter | Total Projected Resolution Costs (Gross) | Legal Recovery Proceeds (Net) | Total Projected Resolution Costs (Net) | Net Projected Loss to Stabilization Fund (After Projected Rebate) | Net Projected Loss to Depleted Corporate Capital | Projected Rebate on Assessments Paid to Date | Net Projected Recovery on Depleted Corporate Capital | Net Projected Remaining Assessments |
|---|---|---|---|---|---|---|---|---|
| 2010 July | $13.9 to $16.1 | $0.00 | $13.9 to $16.1 | $8.3 to $10.5 | $5.6 | $7.0 to $9.2 | 0 | $7.0 to $9.2 |
| 2011 Q2 | $10.8 to $15.1 | $0.00 | $10.8 to $15.1 | $5.2 to $9.5 | $5.6 | $1.9 to $6.2 | 0 | $1.9 to $6.2 |
| 2011 Q4 | $11.7 to $15.0 | $0.10 | $11.6 to $14.9 | $6.0 to $9.3 | $5.6 | $2.7 to $6.0 | 0 | $2.7 to $6.0 |
| 2012 Q2 | $11.7 to $14.6 | $0.10 | $11.6 to $14.5 | $6.0 to $8.9 | $5.6 | $1.9 to $4.8 | 0 | $1.9 to $4.8 |
| 2012 Q4 | $11.6 to $13.9 | $0.30 | $11.3 to $13.6 | $5.7 to $8.0 | $5.6 | $1.6 to $3.9 | 0 | $1.6 to $3.9 |
| 2013 Q2 | $10.5 to $12.3 | $0.30 | $10.2 to $12.0 | $4.6 to $6.4 | $5.6 | -$0.2 to $1.6 | 0 | -$0.2 to $1.6 |
| 2013 Q4 | $9.7 to $11.1 | $1.30 | $8.4 to $9.8 | $2.8 to $4.2 | $5.6 | -$2.0 to -$0.6 | 0 | -$2.0 to -$0.6 |
| 2014 Q2 | $10.1 to $12.1 | $1.90 | $8.2 to $10.2 | $2.6 to $4.6 | $5.6 | -$2.2 to -$0.2 | 0 | -$2.2 to -$0.2 |
| 2014 Q4 | $9.8 to $11.6 | $1.90 | $7.9 to $9.7 | $3.2 to $4.2 | $4.7 to $5.5 | -$1.6 to -$0.6 | -$0.9 to -$0.1 | -$2.5 to -$0.7 |
| 2015 Q2 | $9.4 to $11.3 | $1.90 | $7.5 to $9.4 | $2.9 to $3.9 | $4.6 to $5.5 | -$1.9 to -$0.9 | -$1.0 to -$0.1 | -$2.9 to -$1.0 |
| 2015 Q4 | $9.1 to $10.7 | $1.90 | $7.2 to $8.8 | $2.9 to $3.5 | $4.3 to $5.3 | -$1.9 to -$1.3 | -$1.3 to -$0.3 | -$3.2 to -$1.6 |
| 2016 Q2 | $8.8 to $10.4 | $2.40 | $6.4 to $8.0 | $2.4 to $2.9 | $4.0 to $5.1 | -$2.4 to -$1.9 | -$1.6 to -$0.5 | -$4.0 to -$2.4 |
| 2016 Q4 | $8.7 to $10.1 | $3.20 | $5.5 to $6.9 | $1.7 to $2.2 | $3.8 to $4.7 | -$3.1 to -$2.6 | -$1.8 to -$0.9 | -$4.9 to -$3.5 |
Generated using projected legacy asset cash flows that have not been realized. Actual cash flows could vary significantly from projections. Point in time estimates based on best available information. Does not include projected legal recoveries.
Negative values represent projected assessment rebates and recoveries of depleted corporate capital.
Prior to substantial legal settlements received in 2013 and 2014, recoveries of depleted corporate capital were projected to be de minimis.
NCUA has received substantial recoveries through pursuit of legal claims against securities underwriters. Net proceeds from these recoveries will reduce future projected ranges of remaining assessments. See NCUA’s Legal Recoveries website for details.
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.
- Corporate System Resolution Program Update briefing from the December 2016 Board meeting.
- Stabilization Fund Assessment Range presentation and accompanying transcript excerpt from the July 2015 Board meeting.
- NCUA Assessment Update video based on information presented at the July 2014 Board meeting.
Details related to the individual Legacy Assets can be found at the NCUA’s Corporate Credit Union FOIA Requests page via the following link: https://www.ncua.gov/services/Pages/freedom-of-information-act/corporate-FOIA-requests.aspx.