Credit unions

WICHITA – A federal judge Friday agreed to consolidate two suits NCUA has brought against Wall Street banks for their sale of faulty residential mortgage-backed securities that went bad and helped cause the failure of U.S. Central FCU and WesCorp FCU, the two biggest of five corporate credit union failures.

LOS ANGELES – A settlement conference between NCUA and lawyers for former WesCorp FCU CEO Bob Siravo failed to bear fruit and the sessions ended without a deal, according to sources involved in the negotiations.

Corporate Central CU last week announced what it is calling "flexible membership options."

COLUMBUS, Ohio – Corporate One FCU said this afternoon that members of Florida’s Southeast Corporate FCU have approved the combination of the two, creating one of the biggest corporates in the country with $5 billion in assets.

ALEXANDRIA, Va. – NCUA said this morning it has barred the former CEOs of U.S. Central FCU and Members United Corporate FCU from working for or with any corporate credit union for their roles in two of the biggest credit union failures.

ALEXANDRIA, Va. – NCUA followed up yesterday’s legal settlement with former WesCorp executive Robert Burrell with a cease and desist order barring the former chief investment officer at WesCorp from working for any corporate credit union; consulting or advising a corporate on investments; or selling any investments to a corporate.

LOS ANGELES – NCUA on Wednesday signed a settlement deal with Robert Burrell, who was the chief investment officer of WesCorp FCU prior to the collapse of the one-time $34-billion corporate credit union.

Catalyst Corporate FCU last week said it plans to acquire Arizona's troubled FirstCorp CU in a so-called purchase and assumption deal.

v

PLANO, Texas – Catalyst Corporate FCU announced this morning plans to acquire Arizona’s troubled FirstCorp CU in a so-called purchase and assumption deal.

BAKERSFIELD, Calif. – Kern Schools FCU on Monday said it joined Alloya Corporate FCU and will be transitioning its item processing and check collection services to Alloya from Western Bridge.

LOS ANGELES – NCUA told a federal judge it has the authority to deny insurance coverage for top executives of WesCorp FCU who are defending themselves against a negligence suit brought by the agency because of the federal government’s role as conservator of the failed institution.

Alloya Corporate Federal Credit Union, of the former Members United Corporate FCU, said it had signed a letter of intent to combine with Central Corporate CU of Michigan to create the nation's largest corporate with almost $5 billion in assets.

LOS ANGELES – A third WesCorp FCU executive being sued by NCUA in connection with the huge corporate credit union failure has agreed to settle the NCUA case, the two sides reported this afternoon.

PLANO, Texas – Catalyst Corporate FCU, which acquired the remnants of WesCorp, said it picked up about 285 new members from the demise of the California corporate.

WARRENVILLE, Ill. – Alloya Corporate FCU, the survivor of what was once Members United Corporate FCU, said this afternoon it has signed a letter of intent to combine with Central Corporate CU of Michigan to create the nation’s largest corporate with almost $5 billion in assets.

WICHITA, Kan.—Wells Fargo, the successor to Wachovia Capital Markets, told a federal court here Friday it should dismiss NCUA's suit over mortgage-backed securities Wachovia sold to WesCorp FCU and U.S. Central FCU because the risks of the securities were clearly spelled out in offering prospectuses.