The task force report comes as NCUA is collecting public comments on its proposed reforms and as more than half of the corporate are reporting losses for 2009. While most of the losses are due to their exposure to U.S. Central FCU, much of it is also due to the corporates' own investments in risky mortgage-backed securities.
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The corporate system was created in the 1970s to provide liquidity to natural person credit unions but evolved over the years so that corporates have become investment houses for credit unions, pooling funds from smaller entities to enable credit union money to compete with large Wall Street pools.
