WASHINGTON — In the wake of an expected $1 billion loss by U.S. Central, the NCUA is infusing $1 billion into the troubled credit union and undertaking a series of efforts to shore up the corporate credit union system.
The initiatives, which were announced after a closed meeting yesterday afternoon, also include a temporary guarantee of member shares of U.S. Central by the National Credit Union Share Insurance Fund.
To pay for rescue, the agency will levy a premium of 56 basis points to all credit unions later this year. NCUA Chairman Michael E. Fryzel said the increase will bring the share insurance fund's equity ratio to 1.30%; it is currently 1.27%.
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