Credit unions

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.

DENVER – Lawyers for Wachovia Capital Markets, now a unit of Wells Fargo, called on the U.S. appeals court here Friday to dismiss a securities suit brought by NCUA in the failure of U.S. Central FCU and WesCorp FCU, claiming a lower court erred when it allowed the credit union regulator to extend the period allowed for filing the claims even though the mortgage-backed securities were sold to the two corporate giants as long as six years before NCUA filed suit.

WICHITA, Kan. – NCUA filed another suit against a Wall Street bank this afternoon, this one naming Barclays, alleging the sale of faulty mortgage-backed securities by Barclays to U.S. Central FCU and WesCorp FCU contributed to the collapse of the two corporate credit union giants.

WICHITA, Kan. – A federal judge agreed yesterday to halt pending litigation over the failure of U.S. Central FCU and WesCorp FCU to allow two Wall Street banks to appeal his July ruling preserving mortgage-backed securities suits by NCUA, in an effort to resolve whether the statute of limitations can be extended to allow for a government conservator’s claims.

IRONTON, Ala. – The long-pending marriage between Corporate America CU and Louisiana Corporate CU was called off last night, after 22 months in the works.

LOS ANGELES – A federal judge ruled yesterday that a so-called tolling agreement between NCUA and Goldman Sachs & Co. in August 2010 allowed the credit union regulator to extend the statute of limitations on securities claims against the Wall Street bank and so refused to dismiss NCUA’s $1.1 billion claims over the failures of U.S. Central FCU and WesCorp FCU.

WICHITA, Kan. – NCUA filed suit this afternoon against UBS Securities claiming securities fraud in the sale of $1.1 billion in mortgage-backed securities to U.S. Central FCU and WesCorp FCU.

Members of FirstCorp have officially approved a "unique consolidation" of the corporate into Catalyst Corporate FCU, Plano, Texas.