Credit unions

WASHINGTON – CUNA has asked NCUA to consider suspending its annual corporate bailout assessments next year as losses on the remnants of the five corporate failures continue to decline.

NCUA last week set the 2013 corporate CU assessment at eight basis points, or $700.9 million, a sign that the multi-year resolution program may be winding down.

Based on one securities firm's close analysis of the "legacy assets" of the five failed corporates, assessments for the Corporate CU Stabilization Fund should be ending soon.

New analysis by Co-Ops for Change has found that U.S. Central FCU's losses are likely to be far less than projected, and that the NCUA guaranteed notes balance is currently over-reserved by $10 billion.

WASHINGTON – New analysis by Co-Ops for Change of the five failed corporates’ spreadsheets asserts that the NCUA Guaranteed Notes balance currently is over-reserved by $10 billion.

ALEXANDRIA, Va. – NCUA this morning set this year’s corporate bailout assessment at 8 basis points, or $700.9 million, a sign that the multi-year resolution program may be winding down.

SAN FRANCISCO – NCUA on Tuesday filed an appeal of the July 13 ruling by a federal court in Los Angeles dismissing most of its $491 million in claims against Goldman Sachs for failed mortgage-backed securities the Wall Street bank sold to U.S. Central FCU and WesCorp FCU – one of a growing number of rulings unfavorable to NCUA related to corporate credit unions.

WICHITA, Kan. – The U.S. Court of Appeals for the Tenth Circuit has agreed to review a lower court’s July 9 ruling dismissing the credit union regulator’s claims against Barclays Capital for the sale of $555 million of faulty mortgage-backed securities the bank sold to U.S. Central FCU and WesCorp FCU.

ALEXANDRIA, Va. – The NCUA Board is expected at next week’s meeting to charge credit unions around $825 million for its fourth annual corporate assessment, bringing the total cost of the corporate credit unions failures to almost $11 billion.

WASHINGTON – A new analysis by Co-Ops for Change asserts that U.S. Central FCU’s losses are likely to be far less than projected.

LOS ANGELES – A federal judge today rejected claims by Standard & Poor’s that its boasts of its ratings impartiality were nothing more than public relations “puffery” aimed at but not to be relied on by investors like WesCorp FCU and Eastern Financial Florida CU to buy what turned out to be billions of dollars of faulty mortgage-backed securities that led to their failures.

WICHITA, Kan. – Faced with diminishing prospects on its multi-billion dollars of corporate credit union claims, NCUA filed yesterday to appeal last week’s ruling by the U.S. District Court here dismissing the credit union regulator’s $555 million of claims against Barclays Capital for the sale of faulty mortgage-backed securities to U.S. Central FCU and WesCorp FCU, the two biggest credit union failures ever.

LOS ANGELES – A federal court on Friday denied a request by NCUA to reconsider a March ruling dismissing the vast majority of $491 million of claims against Goldman Sachs for mortgage-backed securities the Wall Street bank sold to corporate credit union failures U.S. Central FCU and WesCorp FCU, the latest in a growing list of losses for NCUA’s corporate suits.

WICHITA, Kan. – A federal court this afternoon dismissed a suit brought by NCUA against Barclay’s Capital for the sale of $555 million of faulty mortgage-backed securities to U.S. Central FCU and WesCorp FCU, one of nine suits NCUA has filed against Wall Street banks over the failure of the two corporate giants.

LOS ANGELES – A federal judge yesterday rejected Standard & Poor’s bid to dismiss a Justice Department suit claiming the Wall Street rating agency intentionally ignored its own standards rating risky investments sold to WesCorp FCU and Eastern Financial Florida CU, and others, moving the landmark case closer to trial.

Just 17 days before a team of NCUA representatives descended on the offices of WesCorp here to place it into federal conservatorship, its CEO, Bob Siravo, was still holding on to the possibility the corporate giant would suffer no investment losses as a result of the mortgage meltdown.

In the next five years, Lee Butke of Corporate One expects "a few" more mergers among the remaining corporate CUs.

Four years after a crisis among some corporate credit unions began, the corporate CU marketplace has been forever changed.