Credit unions

WASHINGTON-When Evan Clark began Tweeting about NCUA's proposed corporate rule in January, he quickly learned that not many CEOs use Twitter, and that many are tiring of the entire corporate mess.

ALEXANDRIA, Va.-NCUA said last week that its corporate credit union resuscitation plan will require the surviving corporates to hold pledged capital in escrow accounts for the short-term so that all capital may be refunded to members if their corporate does not achieve the agency's new minimum capital standards by Oct. 2011.

ALEXANDRIA, Va. – Privately insured credit unions are threatening NCUA’s efforts to spread the costs of the corporate credit union bailout to non-federally insured members of the corporates, with one executive likening the NCUA proposal to extortion.

WASHINGTON – The Senate last night passed a bill directing the Government Accountability Office to conduct a comprehensive study of NCUA’s handling of the corporate credit union meltdown, as well as the agency’s handling of the growing losses among big credit union failures.

ALEXANDRIA, Va. – CUSOs are asking NCUA to reconsider a proposed amendment to its new corporate credit union rule that would require CUSO members of corporates to pay into the corporate bailout.

ALEXANDRIA, Va. – NCUA said this afternoon that its corporate credit union resuscitation plan will require the surviving corporates to hold pledged capital in escrow accounts for the short-term so that all capital may be refunded to members if their corporate does not achieve the agency’s new minimum capital standards by Oct. 2011.

WALL STREET – NCUA said yesterday that last Friday’s sale of $1.16 billion of NCUA Guaranteed Notes makes a total of $17.8 billion the agency has raised from investors to help finance the industry’s corporate bailout.

WASHINGTON-NCUA called on Congress last week for extraordinary new powers that would extend the statute of limitations on charging officers and directors of failed credit unions to as long as 10 years, which would help the National CU Share Insurance Fund recover for losses paid out in those cases.

NCUA told a federal court here that directors and officers of WesCorp FCU abandoned their roles as fiduciaries of a not-for-profit credit union.

WALL STREET – NCUA quickly sold $1.16 billion Friday of its NCUA Guaranteed Notes supported by student loan receivables owned by the five failed corporate credit unions, representing a departure from the five previous offerings that were backed by residential or commercial mortgages.

ALEXANDRIA, Va. – A proposal by NCUA to restrict credit unions to membership in a single corporate could be prove to be anti-competitive and drive credit unions outside the corporate system for vital services, credit unions are telling NCUA.

TALLAHASSEE, Fla. – Southeast Corporate FCU, one of the largest surviving corporates, on Thursday announced it plans to raise $80 million in new capital and shrink its balance sheet by $1 billion as part of a recapitalization to meet NCUA’s new minimum capital standards.

WALL STREET – NCUA plans to sell as much as $1.2 billion of its corporate bailout bonds later this week backed by student loan assets owned by the failed corporate credit unions.

SACRAMENTO, Calif.-Credit union CEOs continue to react to NCUA's proposal that natural-person CUs be limited to membership in a single corporate, and that membership fees be charged, with most noting there are numerous related issues involved.

CINCINNATI-NCUA's proposal to assess privately insured credit unions for a portion of the costs in preserving the corporate credit union system has generated mixed reaction.

PLANO, Texas-In the first of what is expected to be numerous mergers among surviving corporate credit unions, the advisory council of Southwest Bridge Corporate approved a plan to merge the corporate shell and its national field of membership into Georgia Corporate FCU, known until a charter change last month as Georgia Central CU.

LOS ANGELES – In a pleading that could have broad ramifications for officers and directors of failed corporate credit unions, NCUA told a federal court here that directors and officers of WesCorp FCU abandoned their roles as fiduciaries of a not-for-profit credit union by pursuing ever increasing profits for the failed one-time $34 billion corporate.

WASHINGTON – Previously secret documents released by the Federal Reserve yesterday show that U.S. Central was a major beneficiary of the Central Bank’s emergency Term Auction Facility beginning in August 2008, just as the corporate credit union giant was teetering.

WALL STREET – NCUA is expected to launch a fourth offering of guaranteed corporate notes this morning, this time of $3.5 billion worth.

WASHINGTON – The Senate Banking Committee, reflecting heightened congressional interest in the corporate credit union bailout, has set an unusual oversight hearing focusing solely on NCUA for next week.