Credit unions

NCUA told a federal court last week that former officers of WesCorp FCU may not raise the regulators' own oversight and numerous approvals of risky and exotic investments in their defense of a multi-billion dollar negligence suit brought by the credit union agency.

LOS ANGELES – Goldman Sachs asked a federal court this week to dismiss a billion-dollar suit brought by NCUA in the failure of U.S. Central FCU and WesCorp FCU, saying risks associated with $1.1 billion of mortgage-backed securities it underwrote for the two corporate giants were adequately disclosed in voluminous offering prospectuses.

LOS ANGELES – NCUA told a federal court yesterday that former officers of WesCorp FCU may not raise the regulators’ own oversight and numerous approvals of risky and exotic investments in their defense of a multi-billion dollar negligence suit brought by the credit union agency.

WASHINGTON – NCUA said the $12 billion the Congressional Budget Office reported Monday as representing federal budget outlays related to the corporate credit union resolution are unrelated to the sale of $12 billion of NCUA Guaranteed Notes in 2011.

ALEXANDRIA, Va. – NCUA told corporate credit unions today it will continue to keep the ACH APEX processing at U.S. Central FCU going until December 31, but plans to raise prices for the processing by 80% July 1 in order to encourage corporates to find new ACH providers by then.

The Government Accountability Office, the accounting arm of Congress, last week said that NCUA's loss projections for the corporate credit unions' meltdown were unreliable and as a result it is not possible to estimate the ultimate losses related to the corporates.

NASHVILLE, Tenn. – Volunteer Corporate CU said it signed an agreement with LendingTools.com, a provider of third-party correspondent financial service solutions, to implement LT’s Private Correspondent Gateway.

WASHINGTON – The Government Accountability Office, the accounting arm of Congress, said today that NCUA’s loss projections for the corporate credit unions meltdown were unreliable and therefore it is not possible to estimate the ultimate losses from the corporate debacle.

WASHINGTON – The Government Accountability Office, the congressional auditing arm, is expected to issue a report as soon as today urging greater NCUA scrutiny of the costs of the corporate credit union resolution, which have varied widely since the 2009 takeover of the nation’s two biggest corporates, U.S. Central FCU and WesCorp FCU.

ALEXANDRIA, Va.-NCUA last week said that following the sale of U.S. Central FCU's electronic banking services to CO-OP Financial Services it will move forward with plans for an orderly wind-down of the other U.S. Central services in 2012.

WICHITA, Kan.–LendingTools and Viewpointe reported they have entered into an agreement to jointly provide a new settlement option for corporate credit unions, helping to fill the void being created as U.S. Central FCU’s operations are wound down by NCUA.

ALEXANDRIA, Va. – NCUA has introduced two new websites, one dedicated to corporate credit union resolution costs, the other to its NCUA Guaranteed Notes program.

PLANO, Texas—With NCUA saying it will wind down the remaining components of U.S. Central Bridge Corporate, including payment services such as ACH and automated settlement, Catalyst Corporate issued a statement saying it will have no problems filling any void for its member CUs, as it began researching the offering of replacement services in 2010.

ALEXANDRIA, Va. – NCUA said this afternoon after the sale of U.S. Central FCU’s electronic banking services to CO-OP Financial Services it will move forward with plans for an orderly wind-down of the other U.S. Central services in 2012.

LOS ANGELES – A federal judge issued a ruling this morning suggesting that the statute of limitations may have expired on NCUA’s claims that Wall Street banks sold mortgage-backed securities they knew were faulty to corporate credit unions, potentially rendering NCUA suits filed earlier this year moot.

LOS ANGELES – A federal judge yesterday questioned NCUA’s claims of malfeasance in the sale of mortgage-backed securities to WesCorp FCU by RBS Securities and issued a preliminary ruling that the credit union regulator has failed to show the Wall Street bank and related entities disregarded their own underwriting standards in the creation of and sale of the MBS.

LOS ANGELES – A federal judge last week directed NCUA and RBS to begin negotiations aimed at settling NCUA’s $629 million claims over the failure of WesCorp FCU, one of five suits NCUA has filed against Wall Street banks over the sale of risky mortgage-backed securities to corporate credit unions.