Credit unions

WASHINGTON – In a new assault on credit unions, community bankers called on Treasury Secretary Timothy Geithner this morning to begin a review of the credit union tax exemption in light of the government-assisted rescue of the corporate system.

ONTARIO Calif. – The Corporate Realignment Task Force recently formed here in the wake of NCUA's revised corporate plan said it has arrived at several guiding principles as it begins its work: the need for a system solution; the need for aggregation; and the need for a universal solution.

ALEXANDRIA, Va. – NCUA said this morning it has granted charters to two new bridge corporate credit union that will assume the operations of U.S. Central FCU and WesCorp FCU, the two biggest corporate failures.

NEW YORK-It was a headline that many credit union executives everywhere cringe: "Credit Unions Bailed Out." But it doesn't appear to have had much effect on members, at least not yet.

LAKE BLUFF, Ill.-The economist who accurately predicted the cost of the corporate rescue continues to believe NCUA's corporate assessment plan will not work, and that the corporate credit union system will not be around in the next three to five years.

ALEXANDRIA, Va.-More than 2,800 people logged into NCUA's Virtual Town Hall Meeting. Here are some of the points made during the Q&A session after the hour-long presentation.

ALEXANDRIA, Va.-NCUA, which a year ago had pegged the cost of the corporate CU bailout at around $7 billion, said the projected cost to credit unions has escalated to as much as $16.1 billion.

ONTARIO, Calif.-Representatives from several credit unions in the western states and in New York announced the formation of Corporate Realignment Task Forces, which they said will devise a cost-effective, cooperative structure to provide CUs with essential services that historically have been provided by corporate credit unions.

ALEXANDRIA, Va.-NCUA has scheduled a series of 11 Town Hall meetings across the country in October in order to discuss the new rules relating to corporate credit union operations and corporate legacy asset resolution.

BIRMINGHAM, Ala.-Actions taken by NCUA to place three more corporates into conservatorship and the agency's new corporate proposal are "well thought out, bold" and were needed to be done to further protect natural-person CUs and their members, Corporate America CEO Thomas Bonds said.

WASHINGTON-Corporate credit unions must change their business model, remove complexity, and take further steps to control costs as a result of the new corporate rule.

WASHINGTON-NCUA has said credit unions keeping their funds at their corporates will be vital to the success of the corporate rescue plan-but will credit unions be willing to do so?

WASHINGTON-In its analysis of NCUA's new rules for corporates, CUNA said it is most concerned with the costs of dealing with so-called "legacy assets" and the resulting impact on credit unions, according to Mary Dunn, head of regulatory compliance.

BIRMINGHAM, Ala.-Thomas Bonds surmised that NCUA's actions strongly signal a consolidation of the corporate system looms in the future.

RANCHO CUCAMONGA, Calif.-As the next few years unfold and NCUA pursues its plan to create "bridge" corporates as a means of executing its vision for the role the agency sees corporates eventually playing, CO-OP Financial Services said it will be seeking to play a role.

ALEXANDRIA, Va.-NCUA's newly passed corporate rules are expected to unleash a major restructuring of the corporate credit union network that will entail consolidation of the disparate group of 28 regional corporates. The question to be settled is who will lead that effort?

GREENSBORO, N.C.-The CEOs of a number of corporate CUs said they believe the requirements and deadlines NCUA has set in its new corporate plan will be achievable.

ALEXANDRIA, Va.-NCUA has outlined the "good bank/bad bank" model under which four of the five conserved corporates will be transitioned to "bridge corporates."

WASHINGTON-NCUA outlined four potential futures for the corporate credit unions that have been taken into conservatorship. The question now is which of these alternatives will win out.