NAFCU Commends NCUA’s Record Recovery of $1.4 Billion in JPMorgan Settlement
WASHINGTON -- November 19, 2013
National Association of Federal Credit Unions (NAFCU) President and CEO Dan
Berger today hailed the National Credit Union Administration’s (NCUA)
announcement today that the agency will receive $1.417 billion from JPMorgan
Chase in recompense for losses to corporate credit unions. Berger said this
comes close to covering all remaining corporate stabilization costs and if
possible, NCUA should halt stabilization assessments on insured credit unions.
“We applaud NCUA’s persistence in seeking recoveries on the sale of faulty
securities that led to the downfall of five corporate credit unions,” said
Berger. “Today’s announcement by NCUA is a momentous one, representing the
first significant financial relief for credit unions that have been operating
under the weight of corporate stabilization since 2009. We appreciate NCUA’s
dogged pursuit of the recoveries it has made thus far, and we strongly
encourage the agency to take a close look at these recoveries and consider
returning any excess received to insured credit unions.”
He added, “This will be an enormous boost for many Main Street credit unions
that were struggling under the continuing burden of corporate stabilization
assessments. When credit unions can continue to serve their members with
low-cost, low-fee products and services, we all win.”
NCUA is receiving the funds as part of a settlement involving JPMorgan Chase
for a wide range of activities undertaken during the housing downturn,
including the sale to corporate credit unions of faulty MBS by Washington
Mutual, which JPMorgan Chase acquired in 2008.
Before today, NCUA had recovered $335 million from parties that sold bad MBS
to the corporates.
The National Association of Federal Credit Unions is the only national
organization that focuses exclusively on federal issues affecting credit
unions, representing its members before the federal government and the public.
National Association of Federal Credit Unions
Director of Public Relations
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