Credit unions

DES MOINES, Iowa-Natural-person credit unions have relied on corporate CUs to be a clearinghouse for capital. The problem, noted Jeff Russell, EVP of The Members Group, is that credit unions eventually became overly reliant on that structure.

FEDERAL WAY, Wash.-NCUA's decision to limit corporate CUs from offering longer-term investments may have opened the door for a new form of credit union cooperation.

WALL STREET-NCUA has increased the second offering of its corporate bailout bonds, expected to price this morning, to $3.76 billion from a planned $2.82 billion.

BROOKFIELD, Wis.-One person sees an emerging market in which the liquidity and payments services offered by corporates will be divided among different providers as the market evolves.

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WALL STREET – NCUA plans to offer another $5.48 billion of NCUA Guaranteed Notes next week, its third offering over the past month of bonds created from the cash flows of mortgage-backed securities owned by failed corporate credit unions.

LOS ANGELES – Former WesCorp CEO Robert Siravo told a federal court here he is ready to defend himself against charges of managerial negligence in the failure of the one-time $34 billion corporate, but that additional charges brought by NCUA alleging he plotted to pad his retirement benefits by millions are nothing but a “sideshow” to the main event and should be dismissed.

WALL STREET – NCUA has increased the second offering of its corporate bailout bonds, expected to price this morning, to $3.76 billion from a planned $2.82 billion.

LOS ANGELES – Former directors of WesCorp FCU urged a federal court today to dismiss a civil suit brought against them by NCUA, saying the federal regulator was well aware of what WesCorp managers were doing in the build-up to the failure of the one-time $34 billion corporate.

ONTARIO, Calif.-The Corporate Realignment Task Force has been expanded to 12 individuals from eight Western states.

TALLAHASSEE, Fla.-Southeast Corporate said its members are saving when sending International Foreign Currency (FX) wires rather than International U.S. Dollar (USD) wires, as are wire beneficiaries.

NASHVILLE, Tenn.-Volunteer Corporate CU has formed a partnership with Sallie Mae to offer the Smart Option Student Loan program to member CUs.

LOS ANGELES-CheckAlt Payment Solutions currently has more than 100 credit union clients, and it believes the shakeout in the corporate CU network will open the door for many more to follow.

DES MOINES, Iowa-The credit union community has now had more than a month to digest NCUA's conservatorship of three more corporate CUs, the agency's legacy asset disposal plan, and its new rules for corporates moving forward.

ONTARIO, Calif.-The new president of the California and Nevada CU Leagues sees payment processing and not becoming dependent upon banks again as the key issues as the corporate CU market takes shape.

NASHVILLE-Early discussions of how the corporate CU market will evolve are initially focusing on the future of payments, with some forecasting regional corporates combining to offer such services, or new CUSOs being formed to take on the task.

TALLAHASSEE, Fla.-There won't be a rush to gobble up the remains or marketshare of failed corporate CUs by other corporates until 2011 or later, according to sources who spoke with Credit Union Journal. And that's if there's any rush at all.

RANCHO CUCAMONGA, Calif.-For Stan Hollen, a key issue needing an answer as the corporate credit union market evolves is liquidity.

DES MOINES-The Iowa Corporate CU, the nation's smallest corporate credit union, last week signed a preliminary agreement with the National Cooperative Bank that will allow its 140 credit union members to join the cooperative bank and access its correspondent services as the corporate winds down its business.

WALL STREET – NCUA will continue the liquidation of U.S. Central FCU and WesCorp FCU next week with the sale of $2.82 billion worth of ten-year Guaranteed Noted comprised of cash-flows from commercial mortgage-backed securities held by the two corporate failures.