Credit unions

BIRMINGHAM, Ala.-Blaming NCUA for the problems that befell the corporate system is easy to do, agree those within and outside the corporate network.

LAS VEGAS-What goes around, comes around, especially when it comes to corporate credit unions and crises. But this most recent crash of many of the corporate CUs ultimately will have to break that cycle, according to one person, who has a long history working with credit unions through various meltdowns and problems.

SCOTTSDALE, Ariz.-While some clearly point to the rating agencies as culprits, Bill McGuire sees corporate staff-the investment teams and leadership-as deserving of a great deal of the blame.

LAKE BLUFF, Ill.-It's going to cost natural-person credit unions $17 billion to bail out the corporates, a price tag that could cripple the CU movement if NCUA continues with its annual assessments.

LAKE BLUFF, Ill.-Corporate CUs are in trouble because they made a bet that did not pay off, and they failed to hedge their wager.

Credit Union Journal recently asked Corporate One CEO Lee Butke to outline the actions his CU has taken over the last three years that helped it mitigate losses.

LANSING, Mich.-Board members and senior management are responsible for what happens to their institutions, but state regulators aren't completely laying the blame for losses that damaged so many corporate credit unions at their feet.

LAS VEGAS – Moving forward, corporates will need to focus on two things: effectiveness and efficiency. Less certain is what is to become of corporates’ “toxic assets.”

LAS VEGAS – The future business model for corporate credit unions continues to be subject of debate, but most agree it will be substantially different. And at least one person is cautioning that natural-person credit unions had better start preparing for carrying a great deal more risk on their balance sheets.

BIRMINGHAM, Ala.-Corporate America CU, which is suing officers and directors of U.S. Central FCU for damages, last week issued subpoenas to Ernst & Young, RiskSpan, Callahan & Associates, Clayton Financial Services and PIMCO, as it seeks a courtroom accounting of the one-time $52 billion corporate's desperate attempts to shift capital accounts to cover burgeoning losses in its final days before an NCUA takeover.

MIDDLETOWN, Penn. – Even as it has received hundreds of commitments from members and stockpiled $117 million in new capital, Mid-Atlantic Corporate FCU announced Friday that it will reduce its full-time workforce by 16%.

LOS ANGELES – In what could mark the beginning of a major bloodletting in the credit union movement, NCUA is scheduled to face off in federal court here next week with seven credit unions over tens of millions of dollars of potential insurance claims against the officers and directors of WesCorp FCU.

DALLAS – Southwest Corporate FCU reported new investment losses of $31.6 million for April, creating a loss of $20.9 million for the first five months of the year and forcing it to deplete more member capital shares.

RIVERSIDE, Calif. – A group of WesCorp FCU members suing the failed credit union over their loss of capital have asked a federal court to reject a bid by NCUA to take over their role in the case, charging the federal regulator has dragged its feet and shown itself to be incapable of pursuing their claims because of its own culpability in the failure of the one-time $34 billion corporate credit union.

ALEXANDRIA, Va. – Hundreds of credit unions are expected to be driven into the red and dozens will be forced into a net worth restoration plan as a result of the $1 billion corporate credit union stabilization charge assessed by NCUA last week.

ALEXANDRIA, Va.-The NCUA Board approved a $1-billion charge to pay for the corporate credit union bailout, while also disclosing that losses accrued by the National CU Shares Insurance Fund have reached almost $1.1 billion for 2010, presaging another big assessment later this year.

ALEXANDRIA, Va. – NCUA plans to borrow as much as $800 million at preferable rates from the U.S. Treasury, which it will infuse into the corporate credit unions as capital in the system continues to dwindle to dangerous levels.