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DALLAS - The three most important words for credit unions today: liquidity, liquidity, liquidity.

LANSING, Mich. - To manage risk in an economy that's turned even tougher, credit union CFOs say they are further scrutinizing credit quality and lending policies, as well as seeking out ways to access and better manage liquidity.

NEW YORK - The former deputy superintendent of banks for the New York State Banking Department's Consumer Services Division has a warning for CUs: strict new regulations are on the way.

WICHITA FALLS, Texas – NCUA said it shut down Wichita Falls CU and sold off the remnants to the $5 million credit union failure to nearby Postel Family CU.

WASHINGTON – Included in the failed $700-billion financial rescue plan by Congress was a tax change that would have allowed financial institutions to treat Fannie Mae and Freddie Mac preferred stock losses as ordinary losses.

OAKLAND, Calif. – NCUA announced yesterday it has liquidated troubled Kaiperm FCU and sold the remnants of the one-time $145 million credit union to Alliant CU, the $6 billion Chicago credit union formerly known as United Airlines Employees CU.

WALL STREET - Last week's earthquake in the financial markets was being felt throughout the credit union industry, as gyrating rates and a variety of holdings were delivering a major shock to balance sheets all over the country.

WASHINGTON - New NCUA Chairman Michael Fryzel promised last week to monitor credit unions closely during the ongoing financial crisis, that is pushing many institutions, including credit unions, to the brink.

HAMPDEN, Maine - The small, single-sponsor credit union advantage is a close relationship with its members. The challenge is maintaining that edge after a field of membership expansion.

WASHINGTON - Credit unions were dipping their feet back into the secondary mortgage markets last week after the federal government takeover of financially troubled Fannie Mae and Freddie Mac, while prospects for billions of dollars in credit union investments in the two companies were brightening.

DECATUR, Ill. - Sometimes keeping it simple can pay huge dividends.

MADISON, Wis. - When it comes to members with mortgage problems, there is a disconnect between what NCUA is saying at the board level and what examiners are saying when on-site, credit unions are reporting.

SAN JOSE, Calif. - Another state charter in California was placed into conservatorship last week when regulators took over the $257-million Valley CU.

ALEXANDRIA, Va. – More large credit unions than ever before – including 16 billion-dollar institutions – sunk into the red for the first half of the year, according to data submitted to NCUA.

CHICAGO - Credit unions in all regions of the country should be revisiting and thoroughly documenting the thinking behind all policies and procedures as state and federal regulators toughen the examination process, according to one CPA firm.

WASHINGTON - The Federal Deposit Insurance Corp. (FDIC) boosted reserves more than 2,000% during the second quarter to cover the costs of bank failures. FDIC said it was reserving $10-billion during the second quarter after the number of banks and thrifts on its "problem list" increased by more than 30% to 117. As a result of the enormous loan loss provision the FDIC's reserve ratio declined 18 points to 1.01%. That, in turn, should mean higher premiums in 2009 for banks and thrifts insured by the FDIC.

ALEXANDRIA, Va. - Credit union members continue to save more than they are borrowing as the economy stifles economic activity. Mid-year data released by NCUA shows savings were up significantly during the first half of the year at 7%, compared to 3.7% for loans. Overall assets grew 6.5%.

LAS VEGAS - The president of one corporate credit union is urging credit unions to maximize their balance sheets by better utilizing "leverage."

SAN DIEGO - Perhaps appropos of the just-concluded Olympics, Fred Becker quotes Chinese philosophy in looking at what's ahead for credit unions.

WASHINGTON – While Fannie Mae and Freddie Mac post red numbers, the news isn’t so gloomy for all. For second quarter 2008, 10 of the 12 Federal Home Loan Banks turned a profit.