Credit unions

ALEXANDRIA, Va.-NCUA last week released a report by its Office of Inspector General projecting final losses on the failure of WesCorp FCU of about $5 billion.

ALEXANDRIA, Va. – In searching for scapegoats for the huge failure of WesCorp FCU NCUA has focused increasing attention on the underwriters who sold the California corporate giant the toxic mortgage-backed securities that sunk it, especially the cozy relationship WesCorp had with now-defunct home loan giant Countrywide Financial Corp.–which was located just 50 miles down the road, in the city of Calabasas.

ALEXANDRIA, Va. – A new report on the failure of WesCorp FCU concludes the one-time $32 billion corporate had too much of its investments tied to a single real estate market–its home state of California–and one issuer, Countrywide Financial Corp., the California-based home loan giant that went down at the height of the mortgage bust.

BIRMINGHAM, Ala. – NCUA has agreed to release some 750,000 documents related to the failure of U.S. Central FCU in response to a suit brought by Corporate America CU.

WALLINGFORD, Conn. – NCUA plans to liquidate Constitution Corporate FCU, the fifth corporate failure, as part of its legacy assets program.

ALEXANDRIA, Va. – NCUA will release a report by its Office of Inspector General tomorrow projecting final losses on the failure of WesCorp FCU of about $5 billion.

ANAHEIM, Calif. — The search for an "enduring system solution" to the future of corporate credit unions remains ongoing, with only now some clarity beginning to take shape, according to numerous sources interviewed by Credit Union Journal during the California/Nevada leagues' annual meeting here.

ALEXANDRIA, Va. – NCUA agreed this morning in the face of industry pressure to extend its deadline for corporate business plans another 90 days, until March 31.

NCUA priced almost $5.4 billion of NCUA Guaranteed Bonds, by far the biggest of three offerings so far of the securities comprised of cash flows from failed corporate credit unions.

A dozen former executives and directors of WesCorp FCU being sued by NCUA over the failure of the one-time $34-billion corporate credit union could be left holding the bag for millions of dollars in legal fees under a clause in their Directors and Office liability insurance.

Thomas Bonds, CEO of CorporateAmerica Credit Union, said potential liability of the former board members of WesCorp and the degree to which they will have to pay related legal expenses has become due-diligence issues for anyone considering serving on a corporate's board.

Count NAFCU President Fred Becker among those who believe the WesCorp board member liability issue is unique to that corporate, and not representative of a potentially larger problem.

One analyst with knowledge of the situation related to WesCorp and the potential liability of its former board members said insurance coverage for legal fees is just one issue.

NEW YORK – Last week’s Chapter 11 filing by Ambac Assurance, which provides insurance on billions of dollars of mortgage-backed securities held by corporate credit unions, is likely to add to the price tag of the corporate bailout, just as NCUA is trying to get its hands around a loss estimate for the failure of the five corporates.

ALEXANDRIA, Va. – NCUA announced this afternoon it has separated the toxic assets from two of the latest corporate failures, Members United Corporate FCU and Southwest Corporate FCU, and created so-called bridge corporates to continue their services operations as it sells off and liquidates the investments of the two institutions.

KANSAS CITY – The corporate network announced today it plans to create an alternative to the payment systems now offered by the various corporates, including products such as ACH, national settlement (Automated Settlement), international services, and custody/safekeeping, as well as services formerly offered through subsidiaries of U.S. Central FCU.

ALEXANDRIA, Va. – NCUA is planning to amend its new corporate credit union regulation next week–even as the ink is still drying on the new rule passed just weeks ago--by restricting credit union membership to a single corporate and providing additional sources of revenue for corporates.

BIRMINGHAM, Ala. – Corporate America CU, searching for an accounting for the ill-fated capital conversion at U.S. Central FCU in the winter of 2008, filed suit against NCUA yesterday seeking some 750,000 pages of records related to the failure of the one-time $52 billion corporate credit union.

LOS ANGELES – A dozen former executives and directors of WesCorp FCU being sued by NCUA over the failure of the one-time $34 billion corporate credit union could be left holding the bag for millions of dollars in legal fees under a clause in their Directors and Office liability insurance.

WALL STREET – NCUA is expected this morning to price almost $5.4 billion of NCUA Guaranteed Bonds, by far the biggest of three offerings so far of the securities comprised of cash flows from failed corporate credit unions.