The National Credit Union Administration took under conservatorship three more troubled corporate credit unions Friday as part of is effort to shed the corporate system of toxic assets.
Members United Corporate, Southwest Corporate and Constitution Corporate will join U.S. Central and WesCorp under conservatorship since March 2009, and have no chance of being revived, the agency said.
The troubled assets held by the five corporates, mostly underwater mortgage-backed securities, amount to 98% of the $50 billion worth of troubled assets in the corporate system, the NCUA said.
The corporates will undergo a good bank/bad bank plan, with the NCUA stripping the troubled assets from the failed corporates and marketing them to Wall Street investors and to regular credit unions.
