Credit unions

LOS ANGELES – NCUA has reached a negotiated settlement on civil negligence charges with former WesCorp FCU CFO Todd Lane, the last of what was once 19 defendants in the case.

ALEXANDRIA, Va. – NCUA is projecting an NCUSIF premium range in 2013 of 0 to 5 points of insured shares, and a Stabilization Fund assessment range of 8 to 11 basis points of insured shares. The combined projected range is 8 to 15 basis points, according to the agency’s new forecast.

WICHITA, Kan. – NCUA this morning sued Bear Stearns & Co., now a unit of JP Morgan Chase, over the sale of mortgage-backed securities to four corporate credit union failures, the 11th Wall Street bank targeted for culpability for the corporate debacle.

WICHITA, Kan. – Credit Suisse Securities said Friday in a motion to dismiss a civil suit brought by NCUA that the failed corporate credit unions it sold mortgage-backed securities to continued to buy risky MBS in order to boost investment returns even after they were repeatedly warned by NCUA of their strategies.

WICHITA, Kan. – NCUA urged a Federal court here Friday to reject a request by JP Morgan Chase to stay its suit against the Wall Street bank for the failure of U.S. Central FCU and WesCorp FCU, arguing a stay would risk the elimination of key documents in the case and delay the potential payout of hundreds of millions of dollars in damages to credit unions.

WICHITA, Kan. – JP Morgan Chase asked a federal court here Friday to postpone a civil suit brought against it by NCUA in the failure of four corporate credit unions until a federal appeals court has decided whether the credit union regulator waited too long to file similar securities claims against RBS Securities, Wells Fargo’s Wachovia Capital Markets and other Wall Street banks.

DENVER – A federal appeals court agreed this morning to hear an appeal by RBS Securities and Wells Fargo’s Wachovia Capital Markets on whether NCUA filed suit against the Wall Street banks too late to satisfy the statute of limitations on securities claims for the failure of the five corporate credit unions.

MIAMI – Shutts & Bowen, LLP, announced this afternoon it has hired Francois Henriquez, the former general counsel at U.S. Central FCU who headed the failed corporate credit union under NCUA conservatorship, to work in its credit union practice.

ALEXANDRIA, Va. – NCUA said this morning it lowered its loss projections for the corporate credit union resolution by as much as $400 million, due to improved performance by bonds associated with the bailout.

IRONADALE, Ala. – Corporate America CU said this morning it has hired Pete Pritts, the former CEO of Arizona’s FirstCorp CU, as president and CEO of the $2 billion corporate credit union.

ALEXANDRIA, Va. – NCUA said last evening it has finally shuttered U.S. Central FCU as it transitioned all of the one-time central bank for credit unions’ correspondent services, like ACH services, for corporate credit unions to other providers.

NCUA has issued a prohibition order against former WesCorp CEO Bob Siravo that includes an agreement Siravo pay $600,000 to the liquidating agent for the failed corporate.

WASHINGTON – A key lawmaker has called on NCUA for information regarding lucrative fee arrangements NCUA has struck with several law firms representing the agency in multi-billion dollar civil suits against Wall Street banks over their sale of mortgage-backed securities to the five failed corporate credit unions.

PLANO, Texas – The NCUA Board in closed meeting last week approved the acquisition by Catalyst Corporate FCU of Arizona’s troubled FirstCorp CU in a so-called purchase and assumption deal, continuing the revival of Catalyst, the remnants of failed Southwest Corporate FCU.

WASHINGTON – A federal magistrate ruled that NCUA Board members Debbie Matz and Gigi Hyland need not testify in the suit against top WesCorp FCU executives, but approved a bid by the WesCorp figures to depose the one-time chief corporate examiner and the agency’s two on-site examiners.

ALEXANDRIA, Va. – Corporate credit unions, which have been largely ignored under NCUA’s liquidity proposal, are urging the agency to change the structure of the Central Liquidity Facility to give corporates direct access to the NCUA-operated lending fund.

WARRENVILLE, Ill. – Alloya Corporate FCU says it has submitted its application for the previously announced merger with CenCorp CU and hopes to complete the combination by year end.

LOS ANGELES – Lawyers for former WesCorp FCU CEO Bob Siravo and CFO Todd Lane filed documents in federal court Friday saying they still want to depose Gigi Hyland on what she knew about the agency’s approval of the failed corporate’s risky investments, even though Hyland resigned from the NCUA Board the same day.

LENEXA, Kan. – NCUA has reached agreement to sell the offices of U.S. Central FCU, just as it was scheduled to shut down the operations of the one-time $52 billion central bank for credit unions last week.

WICHITA, Kan. – NCUA filed another civil suit this afternoon against a Wall Street bank, this time naming Credit Suisse Securities USA, as chief defendant, alleging that its sale of $715 million of faulty residential mortgage –backed securities helped cause the collapse of three corporate credit unions, U.S. Central FCU, WesCorp FCU and Southwest Corporate FCU.