Corporate credit unions

LENEXA, Kan. – U.S. Central FCU this afternoon reported increasing losses on its investments in the first quarter, resulting in a $45.4 million loss for the period.

ALEXANDRIA, Va. — The NCUA Board voted this morning to extend an emergency order essentially allowing corporate credit unions to ignore the agency's minimum capital standards until the end of 2011.

WARRENVILLE, Ill. – Members United Corporate FCU yesterday became the latest corporate credit union to project bigger losses on its investments due to difficulties at its major bond insurer, Ambac Assurance Corp.

WASHINGTON – CUNA said it has depleted all $941,000 of membership capital shares in U.S. Central FCU, where it held two of the troubled corporate credit union’s seven board seats.

WASHINGTON-CUNA is assembling a task force to ensure the continuity of services being delivered by corporate CUs is not interrupted by future changes corporates may undergo.

ALEXANDRIA, Va. – The NCUA Board is expected next week to extend the extraordinary regulatory forbearance that has allowed corporate credit unions to operate using their capital levels of November 2008, even though all but a handful of corporates are well below minimum capital requirements and some are operating with no regulatory capital.

SAN DIMAS, Calif. – WesCorp FCU on Thursday reported further deterioration in its collateralized debt obligations and subprime paper added another $49.4 million in losses for the month of March.

LENEXA, Kan. – Troubles at Ambac Assurance Corp. and the resulting inability of the bond insurer to pay claims caused U.S. Central FCU to restate its fourth quarter results for 2009 to add an additional $274 million in losses.

SAN DIMAS, Calif.-Out of all the investments made by WesCorp FCU over the past few years, perhaps the worst turned out to be risky collateralized debt obligations that appear to have little intrinsic value and have caused a staggering $545.6 million in losses.

COLUMBUS, Ohio – Corporate One FCU last week issued a statement reassuring members on its large position in asset-backed securities supported by student loans, saying that even with almost $100 million in unrealized losses on its $740.1 million portfolio of student loan-backed bonds, the loans are of high quality and it does not expect to realize any credit losses on the securities.

WARRENVILLE, Ill. – Several corporate credit unions are still counting the losses from investments with failed brokerage Lehman Brothers, with at least two, Members United Corporate FCU and Southwest Corporate FCU, tallying tens of millions of losses.

SAN DIMAS, Calif. – Out of all the investments made by WesCorp FCU over the past few years, perhaps the worst turned out to be risky collateralized debt obligations that appear to have little intrinsic value and have caused a staggering $545.6 million in losses – and counting.

MIDDLETOWN, Penn.-NCUA's plan to deal with legacy assets will likely play an even more critical role in determining the fate of corporates than changes to Regulation 704, several suggested.

METAIRE, La.-Consolidation won't cure the ills corporate credit unions or restore confidence at natural-person institutions according to one corporate CEO.

TALLAHASEE, Fla.-Corporates will need to rely on one another if they are to survive in a new environment.

TALLAHASSEE, Fla.-Running a corporate credit union is a thankless job these days, but Brad Miller is embracing his new role as the head of Southeast Corporate FCU here.

COLUMBUS, Ohio-Corporates must to go back to the basics and learn how to be both efficient and competitive if they are to survive, as the drive towards greater operational efficiency will be the "transforming factor" for corportes' future, according to Lee Butke, CEO of Corporate One FCU here.

TOPKEA, Kan.-The proposed rule to reform the corporate system is a bit too one-size-fits-all for some state supervisors.

GREENSBORO, N.C.-Though most of the discussion on the future of the corporate credit union system has revolved around troubled large institutions and "pass throughs," medium-sized corporates could provide a strong business model going forward.

ATLANTA-Dual chartering must be preserved to prevent the homogenization of corporate credit unions one state regulator says, and the current language in NCUA's proposed rule could jeopardize the system, one regulator is stressing.