Credit unions

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.

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.

LOS ANGELES – 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 that would allow them to continue operating their credit unions, according to sources involved in the talks.

WALL STREET – The Securities and Exchange Commission has cleared the sale of NCUA-backed bonds comprised of legacy assets from corporate credit unions, expected to take place as soon as tomorrow.

In a new assault on credit unions, community bankers called on Treasury Secretary Timothy Geithner last week to begin a review of the credit union tax exemption.

NCUA Chairman Debbie Matz told state regulators they should feel comfortable with a new investment option available to credit unions.

During the annual meetings of the CUNA Technology Council and OpSS Council we asked about the most recent corporate conservatorships and employee and member reactions.

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ALEXANDRIA, Va. – The ink was not even dry on a new corporate credit union rule when NCUA was planning amendments to the regulations that will severely limit the ability of corporates to earn income by limiting their investment powers.

WASHINGTON – The credit union lobby insisted yesterday that the government-backed resolution of the corporate credit union meltdown does not amount to a taxpayer bailout because it is ultimately being paid by rank-and-file credit union members.