Credit Unions Again Hold Wall Street Accountable; Spare Taxpayers

FOR IMMEDIATE RELEASE

November 22, 2013                                                  

CONTACT:
Lynn Heider
(503) 350-2225
(503)358-0773 (mobile)

Credit Unions Again Hold Wall Street Accountable; Spare Taxpayers           

(Sea Tac, WA) — The Northwest Credit Union Association (NWCUA) applauds the action of the federal credit union regulatory agency- the National Credit Union Administration (NCUA)–for again successfully holding Wall Street firms accountable for actions that damaged the credit union system.

In its latest win for credit union members, the NCUA achieved a $1.4 billion settlement from J. P. Morgan Chase & Co for its role selling faulty residential mortgage-backed securities to credit unions, leading, the NCUA believes, to the financial failure of five corporate credit unions.  Corporate credit unions provide financial services such as financing and check clearing to credit unions which in turn provide financial services to millions of consumers –including 4.4 million people in the Northwest.

The credit union system did not receive taxpayer funded bailouts for the corporate problems, but instead paid assessments into a stabilization fund to absorb the losses.  Credit unions have paid $4.8 billion into that fund to date.  With the J.P. Morgan settlement, the federal regulator announced it will not charge assessments for the fund in 2014.

News of the J.P. Morgan settlement was welcomed by the NWCUA.

“The credit union system put a smart plan into place and never asked for any money from taxpayers,” said Troy Stang, president and CEO. “Instead the National Credit Union Administration held Wall St. accountable and the courts agreed.”

Freeing the credit unions from further assessments is good for consumers, Stang said, noting the potential for even more savings, services and products “to benefit members on Main Street.”

The NCUA has already won $335 million in similar settlements and has additional court action pending against 13 international banks.

“As cooperatives, credit unions took no bailouts but instead took steps to hold those responsible accountable,” said Stang. “We applaud the NCUA for its diligence.”

 

The Northwest Credit Union Association is the not-for-profit trade association serving more than 150 of Oregon and Washington’s credit unions and their 4.4 million members. The NWCUA is the voice of the Northwest credit union movement, providing legislative, regulatory and public advocacy in addition to education, compliance, networking support and business solutions to its members. For information on how to join a credit union, please visit http://www.asmarterchoice.org.

Download a copy of the news release.

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