Credit unions

DES MOINES – The Iowa Corporate CU, the nation’s smallest corporate credit union, has 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, which is in the process of liquidating U.S. Central FCU and WesCorp FCU, is expected to launch a second sale of legacy assets bonds, known as NCUA Guaranteed Notes, in the coming days.

WASHINGTON – CUNA disputed that its numerous ties with U.S. Central FCU amounted to control of the board of the one-time central bank for credit unions, which was liquidated Oct. 1.

WALL STREET – Pent-up demand for new issuance made for strong investor demand for the newly issued NCUA Guaranteed Notes, a blend of $3.8 billion of bonds secured by the assets of U.S. Central FCU.

WASHINGTON – NAFCU said yesterday it was unsatisfied with a 28-page report detailing the failure of U.S. Central FCU and demanded a complete accounting of why the one-time $52 billion corporate failed, costing credit unions as much as $7 billion.

ALEXANDRIA, Va. – A new report on the failure of U.S. Central FCU concludes that NCUA examiners failed to adequately monitor the financials of the one-time $52 billion corporate credit union as it piled up increasing concentrations of risky private-label subprime mortgage-backed securities and so-called Alt-A paper.

BIRMINGHAM, Ala. – Corporate America CU, which is suing officers and directors of U.S. Central FCU over an ill-fated 2008 conversion of corporate capital that was wiped out soon after, has subpoenaed the records of U.S. Central’s auditor, BDO Seidman.

Traders last week were anxiously awaiting the first offering of NCUA Guaranteed Notes.

In a move unthinkable just two years ago, NCUA began a fire sale this week of corporate credit union assets, realizing billions of dollars in losses.

ATLANTA — NCUA Board Member Gigi Hyland is imploring credit unions to comment on several proposed amendments to its new corporate rule, which will be issued next month.

Lawyers representing eight current CEOs of the nation's biggest credit unions are currently negotiating with NCUA to settle claims related to their service on the board of WesCorp FCU.

A list of defendants in the NCUA's WesCorp suit.

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ALEXANDRIA, Va. – NCUA is investigating whether to bring charges against dozens of directors of the three recent corporate credit union failures – including CEOs of some of the nation’s biggest credit unions – just as it did in the failure of WesCorp FCU.

WALL STREET – The long-awaited sale of $3.8 billion of NCUA’s Guaranteed Notes, created from the detritus of U.S. Central FCU, will commence this morning, when the bonds are priced and sold.

WALL STREET – The initial offering of $3.8 billion of NCUA Guaranteed Notes, securitized by toxic assets owned by U.S. Central FCU, will be split into two pools: one with a fixed interest rate and the other with a floating rate.

ALEXANDRIA, Va. – In a move unthinkable just two years ago, NCUA began a fire sale this week of corporate credit union assets, realizing billions of dollars in losses that will trickle down to members of America’s credit unions over the next decade.

WALL STREET – Traders yesterday were anxiously awaiting the first offering, expected as soon a late yesterday, of NCUA Guaranteed Notes, the bonds derived from cash flows on toxic assets held by the corporate credit unions that carry a full federal guarantee.