Corporate credit unions

GLENDALE, Calif.–A group of credit unions that filed a lawsuit against Western Corporate FCU are suggesting NCUA’s request that it instead be named lead plaintiff proves their case has merit, but several of the CUs involved claim NCUA has not shown it can adequately represent the interests of CUs when it comes to WesCorp.

ALEXANDRIA, Va.–NCUA, acting as Conservator of Western Corporate Federal Credit Union (WesCorp), filed papers in Superior Court in Los Angeles Dec. 30 to intervene as plaintiff in a lawsuit against several current and former employees and officials of WesCorp.The agency is maintaining that it is the proper plaintiff and should be permitted to replace the current plaintiffs and determine whether and how to proceed with any action against WesCorp’s former Board members and employees.

WASHINGTON–The Federal Reserve Board yesterday proposed amendments to Regulation D (Reserve Requirements of Depository Institutions) that would enable the establishment of a term deposit facility–a move that could impact the corporate credit union system, according to one source.

WASHINGTON-After completing its work in September, the joint CUNA/NAFCU Corporate Credit Union Task Force is likely dissolved for good.

TALLAHASSEE, Fla. – Southeast Corporate FCU, one of several struggling corporate credit unions announced more lay-offs this week, making a total of 28 staff reductions for the year.

DULUTH, Ga. – Georgia Central CU said additional losses on its U.S. Central FCU holdings will force it to deplete its own members’ capital by an additional $12 million on Dec. 22, the latest trickle-down of U.S. Central losses.

WARRENVILLE, Ill.-Members United Corporate FCU reported that its growing losses and diminishing capital have prompted the Federal Reserve to cut off its access to the discount window for emergency loans.

WASHINGTON – As they contemplate a recapitalization of the corporate credit union network, executives, directors and members of the corporates are vexed by the $50 billion question surrounding the troubled mortgage assets held in the network.

SOUTHFIELD, Mich. – CenCorp CU became the latest corporate credit union to deplete its member capital as a result of losses trickled down from U.S. Central FCU and from write downs on its mortgage-backed securities.

WARRENVILLE, Ill. – Members United Corporate FCU reported that its growing losses and diminishing capital have prompted the Federal Reserve to cut off its access to the discount window for emergency loans.

DALLAS – Southwest Corporate FCU reported Monday that the further depletion of its membership capital shares in U.S. Central FCU last month created a loss of $40.2 million for October, and a loss of $128.9 million for the first 10 months of the year.

SAN DIMAS, Calif. — A group of seven natural-person credit unions filed suit against the former management and directors of WesCorp FCU in state court last week over the failure of the one-time $32-billion corporate.

GLENDALE, Calif. — Among the latest WesCorp lawsuit's plaintiffs are: 1st Valley CU, Glendale Area Schools FCU, and Tulare County FCU, Cascade FCU, Northwest Plus CU, Stamford FCU and Northwest FCU.

WARRENVILLE, Ill. — Members United Corporate FCU here plans to deplete a little more than half of its remaining member capital shares after posting a $149.6 million loss in October.

ALEXANDRIA, Va. — Proposed reforms to NCUA's corporate credit union regulations will blur the distinction between so-called wholesale corporates and retail corporates, likely meaning the end of U.S. Central FCU, the nation's only wholesale corporate that has been run under NCUA conservatorship since March.

TALLAHASSEE, Fla. – Southeast Corporate FCU reported its audited financials for 2008 this week, based on last month’s report from U.S. Central FCU, showing a $111.7 million loss for last year, most of it due to the charge-off of its U.S. Central capital.

ALEXANDRIA, Va. – NCUA, which is managing the two biggest corporate failures ever, is continuing to try to work down billions of dollars of toxic mortgage bonds held by U.S. Central FCU and WesCorp FCU, lest it be forced to realize the diminished value of the bonds in a fire sale.

LAS VEGAS – The president and CEO of WesCorp said credit unions will have the opportunity for a “fresh start” with their corporate network when NCUA releases its proposed rules for corporates today – and he asked CUs to stick with the conserved corporate.

ARLINGTON, Va. – Despite the turmoil of the past 12 months, corporate credit unions continue to be the major source of additional liquidity for credit unions, according to a new survey.

WALLINGFORD, Conn. — Constitution Corporate FCU is now essentially insolvent as it posted $2.44 million undivided earnings deficit in its recently released Sept. financial report. The corporate's reserves, paid in capital and member capital shares are now fully depleted.