Credit unions

ALBANY, N.Y. — A task force of New York credit unions that helped create Members United Corporate FCU has moved to revive the failed corporate credit union, currently in the semi-liquidated state under NCUA conservatorship.

TORRANCE, Calif.-If Western Bridge Corporate and Members United Bridge Corporate are to eventually merge, the biggest hurdle will be getting NCUA to approve the risk controls of the combined organizations.

NCUA's recent guidance on corporate restructuring has many CEOs contending the regulator has "pulled the rug out" from under them, reversing its original "hands-off" policy regarding reconstitution of the corporate network.

WALL STREET – NCUA plans to sell another $1.1 billion of NCUA Guaranteed Notes, making almost $23 billion raised from the sale of the bonds backed by failed corporate credit union assets.

TALLAHASSEE, Fla. – Those mailings deluging you soliciting more money are not another credit card solicitation, but are corporate credit unions asking you to commit more capital to them, even after some of them have erased all of your prior capital.

SAN DIMAS, Calif. – The member advisory committee for WesCorp Bridge Corporate FCU voted overwhelmingly to apply to NCUA to re-charter the one-time $34 billion corporate credit unions–a first step in what is expected to be the pursuit of a merger with Members United Corporate FCU. Both entities are being run under conservatorship by NCUA, which has stripped out all of their investments and is liquidating them as part of the corporate resolution. Earlier this week, credit unions in New York voted to pursue a re-chartering of Members United. The panel votes came a week after NCUA warned off the two failed corporates from hooking up before they shed their so-called bridge status and are re-chartered as proper corporates. It also came a day after NCUA issued new corporate chartering guidelines. The next step will be for the WesCorp Bridge Member Advisory Executive Committee to engage NCUA’s Office of Corporate CUs to gain support of the business plan to be submitted before March 31. John Updyke, chairman of the advisory committee and president of Honda FCU, said they will seek consent of the remaining WesCorp member credit unions before seeking final approval from NCUA.

GREENSBORO, N.C. – First Carolina Corporate CU on Thursday announced a recapitalization campaign under which the $2 billion corporate will seek to raise as much as $75 million in perpetual contributed capital.

ALBANY, N.Y. – A task force of New York credit unions, who helped create Members United Corporate FCU, moved today to revive the failed corporate credit union, currently in the semi-liquidated state under NCUA conservatorship. A report issued this afternoon by the New York CU League’s Corporate CU Services Task Force calls for the reconstitution and recapitalization of the one-time $13 billion corporate, which was seized by NCUA Sept. 24, along with two other corporate failures, Southwest Corporate FCU and Constitution Corporate FCU. Members United, which was subsequently combined with Constitution Corproate, is currently being operated by NCUA as a so-called bridge corporate, with the vast majority of its assets–its investment portfolio–being liquidated as part of NCUA corporate bailout. The New York task force of 27 credit union CEOs said the state’s credit union executives have acknowledged the losses at Members United, which erased some $725 million of credit union capital–“and are prepared to move forward.” The task force also noted that a number of the state’s largest credit unions have fled the corporate system and won’t be coming back. The task force also recommends that a reconstituted Members United pursue mergers with other corporates under a consolidation of the corporate system. New York credit unions helped create Members United with the 2006 merger of their own corporate, Empire Corporate FCU, into Mid-States Corporate FCU of Illinois, and the Empire Corporate CEO Joseph Herbst eventually ran Members United till its takeover by NCUA.ALBANY, N.Y. – A task force of New York credit unions, who helped create Members United Corporate FCU, moved today to revive the failed corporate credit union, currently in the semi-liquidated state under NCUA conservatorship.

WALL STREET – NCUA is preparing its latest offering of corporate bailout bonds, this one $840 million worth of so-called NCUA Guaranteed Notes backed by commercial mortgage-backed securities. The latest offering will have two tranches, one a fixed-rate deal and the other floating-rate. The latest offering brings to more than $21 billion worth sold by NCUA since October, with some $5 billion more planned. The bonds are federally guaranteed. Barclays Capital is the lead underwriter.WALL STREET – NCUA is preparing its latest offering of corporate bailout bonds, this one $840 million worth of so-called NCUA Guaranteed Notes backed by commercial mortgage-backed securities.

ALEXANDRIA, Va. – NCUA has rejected ongoing plans to combine two or more of the four failed corporate credit unions – surviving now as so-called bridge corporates – to create a single entity with a nationwide reach.

COLUMBUS, Ohio – Corporate One FCU said it put most of its troubles behind it and continued to build capital in 2010, leaving it as one of the most likely big corporates to survive the system consolidation.

ALEXANDRIA, Va. – NCUA on Tuesday cautioned credit unions who are working to reconstitute the corporate credit union network that putting too many resources in any one entity could pose an unacceptable “too big to fail” risk to the credit union system, just as the one at U.S. Central FCU.

ALEXANDRIA, Va.-NCUA was expected to announced civil charges against third-party entities involved in the failure of WesCorp FCU, expanding the agency's efforts to recover some of the $7 billion of losses estimated from the failure of the one-time $34 billion corporate.

DALLAS-The success or failure of the planned resuscitation of Southwest Corporate FCU, liquidated by NCUA along with four other failed corporate credit unions last fall, will depend on whether members of the one-time $14 billion institution agree to pony up new capital as part of a plan to combine the remnants of Southwest with Georgia Central FCU.

PLANO, Texas – The combined entity of Southwest Corporate (Bridge) FCU and Georgia Corporate FCU will have a new name: Catalyst Corporate FCU.

WALL STREET – NCUA plans to sell another $1.26 billion of its corporate bailout bonds this week, after last week’s successful offering of $1.51 billion worth. The bonds, with the federal guarantee, have provided popular with investors, who have snapped up more than $20 billion worth since NCUA began selling them to finance the liquidation of five failed corporate credit unions in October. The bonds were created from the cash flow, that is the principal and interest payments, on some $50 billion of toxic mortgage-backed securities held by the five corporate failures, U.S. Central FCU, WesCorp FCU, Members United Corporate FCU, Southwest Corporate FCU and Constitution Corporate FCU. The actual bonds are being held in separate trusts by NCUA. The latest offering is of floating-rate bonds that are backed by floating-rate MBS contained in the trust. The bonds are being offered through lead underwriter Barclays Capital.

ALEXANDRIA, Va. – ASI, the lone surviving private deposit insurer for credit unions, told NCUA its proposal to assess a mandatory “voluntary” corporate system resolution charge to its 150 credit unions in nine states and all non-federally insured credit union corporate members is outside of the federal agency’s legal authority and probably illegal under extortion statutes.

DALLAS – The success or failure of the planned resuscitation of Southwest Corporate FCU, liquidated by NCUA along with four other failed corporate credit unions last fall, will depend on whether members of the one-time $14 billion institution agree to pony up new capital as part of a plan to combine the remnants of Southwest with Georgia Central FCU.

IRONDALE, Ala. — Members of Louisiana Corporate CU would not be required to acquire new capital after their corporate is merged into Corporate America CU, under preliminary plans for a merger of the two corporates.

DALLAS – Members of Southwest Corporate Bridge FCU have approved a reverse merger of the remnants of the failed corporate into Georgia Corporate FCU, one of three pending corporate combinations. In balloting that began at a special meeting held online last week 93% of the 540 voting members of Southwest approved the merger. The vote represented just 39% of the one-time $13 billion corporate’s 1,300 members. Southwest Corporate Bridge represents a shell of its former self after its main asset, its investment portfolio, was liquidated by NCUA following the agency’s Sept. 24 takeover of Southwest and two other corporate failures, Members United Corporate FCU and Constitution Corporate FCU. Consequently, the new corporate will use the Georgia Corporate charter, though Southwest will dominate the board of the new entity, with eight of the nine seats. One of the first steps of the merger plan, which has been submitted to NCUA for approval, is a road show to raise perpetual contributed capital under NCUA’s new corporate regulations. Two other corporate mergers are in the works; Virginia Corporate FCU is being merged into Mid-Atlantic Corporate FCU in Pennsylvania; and Alabama’s Corporate America CU is preparing to combine with Louisiana Corporate CU.DALLAS – Members of Southwest Corporate Bridge FCU have approved a reverse merger of the remnants of the failed corporate into Georgia Corporate FCU, one of three pending corporate combinations.