Credit unions

BIRMINGHAM, Ala. – Barring a last-minute settlement, past and present credit union leaders are scheduled to go on trial Aug. 1 for their role in the 2008 conversion of $450 million of temporary capital in U.S. Central FCU into permanent capital that was erased within weeks by growing losses at the one-time $52 billion central bank for credit unions.

LOS ANGELES-Lawyers for NCUA told a federal judge here that the federal agency's June 20 suits against JP Morgan and RBS Securities should not exonerate officers and directors of WesCorp FCU in the 2009 failure of the one-time $34-billion corporate.

GREENSBORO, N.C. – First Carolina Corporate CU said yesterday it raised $65 million in new perpetual contributed capital, enough to attain NCUA’s new minimum capital standards.

LOS ANGELES – Lawyers for NCUA told a federal judge here that the federal agency's June 20 suits against JP Morgan and RBS Securities should not exonerate officers and directors of WesCorp FCU in the 2009 failure of the one-time $34 billion corporate credit union.

ALEXANDRIA, Va. – NCUA approved a program this morning allowing credit unions to voluntarily prepay hundreds of millions of dollars in interest-free corporate stabilization assessments in order to defray the long-term costs of the stabilization plan.

ALEXANDRIA, Va. – The NCUA Board rejected a plea from the organizers of the new Members United Corporate FCU to appoint a director of the Illinois credit union league as chairman of the board of directors of the new corporate, to be known as Alloya Corporate FCU.

WASHINGTON-CUNA, NAFCU and NASCUS have all filed comment letters with NCUA on its proposed voluntary corporate stabilization prepayment program, and all three groups have found different components of the proposal they would like to see changed.

ALEXANDRIA, Va.-Dozens of credit unions are committing to participating in a proposal allowing them to prepay NCUA assessments for the corporate crisis, with most of them calling for an increase in the program from the $300 million proposed to at least $1 billion.

ALEXANDRIA, Va.-In keeping to its nine-month-old projections of the cost of the corporate credit union stabilization program at $7 billion to $9 billion, at least one person is wondering if the agency is vastly underestimating the costs for political reasons.

LOS ANGELES – Lawyers for former executives and directors of WesCorp FCU told a federal court here yesterday that NCUA’s new suits claiming JP Morgan and RBS Securities misrepresented the sale of risky mortgage-backed securities to the one-time $34 billion corporate should disprove the agency’s claims of negligence in a multi-billion federal lawsuit brought against them.

ALEXANDRIA, Va. – NCUA has scheduled a special meeting for next Wednesday when its Board is expected to approve a voluntary corporate bailout assessment program.

ALEXANDRIA, Va. – In keeping to its nine-month-old projections of the cost of the corporate credit union stabilization program at $7 billion to $9 billion, some experts are wondering if the agency is vastly underestimating the costs for political reasons.

ALEXANDRIA, Va. – Dozens of credit unions are committing to participating in a proposal allowing them to prepay NCUA assessments for the corporate bailout, with most of them calling for an increase in the program from the $300 million proposed to at least $1 billion.

WALL STREET – JP Morgan Securities agreed today to pay $153.6 million to settle civil charges brought by the Securities and Exchange Commission that it misled investors in a complex mortgage-backed securities deal just as the housing market was starting to plummet. Under the settlement, harmed investors will receive all of their money back.

ALEXANDRIA, Va. – CUNA called on NCUA yesterday to lift the secrecy over its corporate plan as one of the conditions to supporting the agency’s proposal to allow credit unions to prepay their corporate bailout assessments.

ALEXANDRIA, Va. – NCUA said its suits against JP Morgan Chase and RBS Securities over the sale of toxic mortgage backed securities to failed corporate credit unions should be considered by the federal court where they were filed earlier today as within the statute of limitations, even though some of the sales took place as long as five years ago.

WASHINGTON-NCUA Deputy Director Larry Fazio said last week that the agency is continuing to review credit union interest in its proposal to allow credit unions to prepay some of their corporate credit union stabilization fund assessments, and added that whether a credit union chooses to participate or not will not be an issue during examinations.