History of NCUA Corporate Stabilization Program in Timeline

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By Popular Timelines Editorial Team  · Updated:
NCUA Corporate Stabilization Program

The NCUA Corporate Stabilization Program, launched on January 28, 2009, addressed investment losses at U.S. Central Credit Union, a third-level corporate entity serving other corporate credit unions which, in turn, served public credit unions. The program aimed to stabilize the credit union system following significant financial distress within these interconnected institutions. The program was designed to help cover losses and restore confidence in the credit union network.

January 28, 2009: Creation of NCUA Corporate Stabilization Program

On January 28, 2009, the NCUA Corporate Stabilization Program was established in response to investment losses at U.S. Central Credit Union, a third-level corporate credit union serving other corporate credit unions which in turn served public-facing credit unions.

2009: NCUA plan for increased insurance premium

In 2009, the NCUA planned for all federally insured natural-person credit unions in the U.S. to pay an increased insurance premium to the National Credit Union Share Insurance Fund (NCUSIF) to cover investment losses at U.S. Central, for which the NCUSIF had written a $1 billion capital note. However, the NCUA provided no guarantees that the planned assessment would adequately cover eventual bad debt losses of the corporate credit unions in 2009.