ALEXANDRIA, Va.—NCUA, 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 said it will also distribute $209.8 million in dividends to more than 1,100 shareholders of the former Southwest Corporate, which is now part of Catalyst Corporate. NCUA completed capital distributions to Southwest Corporate capital holders in 2021.
“This latest distribution is another important milestone in the successful Corporate System Resolution Program,” Chairman Todd M. Harper said in a statement. “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, NCUA has previously made three rounds of distributions. In 2020 and 2021, capital holders of the former Southwest, Members United, and U.S. Central received distributions. Member capital shareholders of the former Connecticut-based Constitution Corporate credit union will also receive funds from the latest round of distributions, scheduled to occur before the end of March 31, 2022.
With the fourth distribution, NCUA reported it will have returned over $1.8 billion to former membership capital shareholders and $209.8 million in dividends to shareholders, the agency stated.
As CUToday.info has reported, the more than a decade-old Corporate System Resolution Program is a an initiative established by the NCUA board to stabilize, resolve, and reform the corporate credit union system in the wake of the 2008 financial crisis, which led to the failure of U.S. Central, Western Corporate (Wescorp), Southwest, Members United, and Constitution Corporate credit unions over time, NCUA noted.
Information on the Corporate System Resolution Program, including projections for the Corporate Asset Management Estates Recoveries and Claims and the process for determining when distributions are made to member capital account holders, can be found on the NCUA’s website.