Credit unions

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?

ALEXANDRIA, Va. – It was no small irony that moments after voting to bar corporate credit unions from investing in risky investments known as collateralized debt obligations – CDOs for short – the NCUA Board gave its approval to a plan to shed as much as $50 billion in toxic mortgage-backed securities held by the corporate system by repackaging them for sale to the public as CDOs.

NEW YORK – Credit unions awoke Saturday morning to the types of negative headlines that have described failed brokerages and mega-banks the past two years.

ALEXANDRIA, Va. – NCUA, which a year ago had pegged the cost of the corporate credit union bailout at approximately $7 billion, last week said the projected cost to credit unions has escalated to as much as $16.1 billion.

NCUA said it took under conservatorship three more troubled corporate credit unions this afternoon as part of is effort to shed the corporate system of toxic assets.

The NCUA Board's new corporate credit union rules will bar corporates from investing in a variety of risky investments.

WALL STREET – NCUA is seeking bids on about $800 million of commercial mortgage-backed bonds collected from U.S. Central FCU and WesCorp FCU, the opening efforts on its bid to securitize as much as $50 billion in troubled mortgage securities held by the corporate credit unions.

BIRMINGHAM, Ala. – A federal appeals court has upheld the right of Corporate America CU to sue RubinBrown LLP over a valuation the St. Louis firm provided U.S. Central FCU in the conversion of $450 million of member capital in the fall of 2008 just weeks before all of the capital was wiped out by massive losses at U.S. Central.

WASHINGTON – Credit union executives and directors are wondering whether new CUNA President Bill Cheney will be restricted in lobbying NCUA because of the lawsuit the agency has brought over Cheney’s tenure on the board of WesCorp FCU.

WASHINGTON-Credit unions are pulling their time deposits from the corporate system at increasing rates in recent months, with the corporates' share of the movement's investable funds falling to a 30-year low of just 7.7% as of the end of July, according to CUNA.

WARRENVILLE, Ill. – Members United Corporate FCU, which built itself into the second-largest corporate credit union through several mergers, continued to shrink its expenses with an additional 27 lay-offs, as its capital hovers just above insolvency.

ALEXANDRIA, Va. – The long-awaited overhaul of NCUA’s corporate regulation, expected next week, is expected to usher in a consolidation of the corporate network.

WASHINGTON – Credit unions are pulling their time deposits from the corporate system at increasing rates in recent months, with the corporates’ share of the movement’s investable funds falling to a 30-year low of just 7.7% as of the end of July, according to CUNA.

ALEXANDRIA, Va. – NCUA Board’s monthly meeting next week will be conspicuous for what is not in it, rather than what is in it–the Board will not vote on a final corporate credit union rule, as had been expected.

WASHINGTON – CUNA’s new president and CEO Bill Cheney said yesterday he was disappointed in being named as defendant in a negligence suit NCUA is pursuing against directors of WesCorp FCU and denied culpability in the failure of the one-time $34 billion corporate, as he did earlier with the failure of U.S. Central FCU, where he also served as director.

LOS ANGELES – NCUA last night amended a suit it inherited from seven credit union members of WesCorp FCU with additional allegations of breaches of fiduciary duties and gross negligence on the part of fifteen former directors and officers of the one-time $34 billion corporate credit union in connection with over-concentration of certain types of Option ARM mortgage-backed securities.

ALEXANDRIA, Va. – NCUA yesterday extended its extraordinary guarantee of all corporate credit union deposits for another three months, allowing corporates to issue new CDs with maturities up to two years.

MILWAUKEE – A federal judge here ruled that Corporate Central CU and a handful of other corporate credit unions are not entitled to as much as $100 million of so-called excess investments they held in U.S. Central FCU before last year’s failure of the corporate giant.