New York credit unions adversely affected by the 2008 financial crisis may benefit from a $313 million distribution announced Monday by the NCUA. The agency announced that the distribution will be made to more than 400 membership and paid-in capital shareholders of the former Members United, Constitution and U.S. Central corporate credit unions under its Corporate System Resolution Program.
The NCUA will also distribute $82 million in dividends to more than 1,100 shareholders of Southwest Corporate, according to the agency. The distributions are scheduled to occur before the end of September 2022.
With this fifth distribution, the NCUA will have returned more than $2.6 billion to former membership and paid-in capital shareholders and almost $292 million in dividends to shareholders.
As liquidating agent of the former corporate credit unions’ asset management estates, the NCUA has previously made four rounds of distributions. In 2020, 2021 and the first quarter of 2022, distributions were made to capital holders of Southwest, Members United, Constitution, and U.S. Central.
The Corporate System Resolution Program is an initiative that was established by the NCUA board of directors 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, according to the NCUA.