Credit unions

WICHITA, Kansas-NCUA's proposed new rule for corporate credit unions will indirectly force consolidation among those corporates, according to the majority of comment letters sent to NCUA.

ALEXANDRIA, Va. – A growing number of credit unions are questioning NCUA’s supervision of failed corporate credit unions and whether the credit union regulator is up to overseeing the corporates going forward under a new system.

ALEXANDRIA, Va. – Credit union executives and volunteers overwhelmingly are urging NCUA that before undertaking a reform of the corporate system it move to insulate credit unions from the growing losses in the corporates, what one NCUA Board member referred to as the "800-pound gorilla."

LOS ANGELES – Seven credit unions are continuing to fight NCUA for the right to sue over the failure of WesCorp FCU but they now will do so in federal court, where a state judge agreed to NCUA’s request to transfer the suit.

ALEXANDRIA, Va. – Last week’s disclosure of the elimination of all capital at U.S. Central FCU means more losses are going to start trickling down to corporate credit unions and to their natural person credit union members in the coming days.

WASHINGTON-As the Federal Reserve looks for ways to pull liquidity out of the banking system, the board recently proposed a program to sell term deposits to financial institutions-a move that could add even more competition for beleaguered corporate credit unions.

MIDDLETOWN, Penn.-Members of Mid-Atlantic Corporate FCU here will have to make a long-term commitment to the institution or potentially face higher costs for products and services when its new structure goes into effect.

WARRENVILLE, Ill.-Corporate credit unions are lobbying NCUA mightily for their future, with one plan emerging that would combine all 27 corporates into a single entity serving the whole country.

ALEXANDRIA, Va. – NCUA is watching closely a pilot program by the FDIC to securitize assets from failed banks as a means of disposing billions of dollars in private label mortgage-backed securities held by corporate credit unions.

ALEXANDRIA, Va. – NCUA on Thursday said it has extended the expiration date of NCUA’s Temporary Corporate CU Share Guarantee Program, the emergency guarantee of all corporate deposits, from March 31, 2012, to June 30, 2012.

ALEXANDRIA, Va. – NCUA is wrestling with a number of major issues in devising a plan to dispose of as much as $40 billion of troubled assets held by the corporate credit union network, including who should benefit from the sale of the assets, according to sources familiar with the discussions.

WARRENVILLE, Ill. – Corporate credit unions are lobbying NCUA mightily for their future, with one plan emerging that would combine all 27 corporates into a single entity serving the whole country.

LENEXA, Kan. – NCUA on Monday announced losses at U.S. Central FCU have eaten $331 million of the $1 billion capital note issued to the troubled corporate credit union last year, making a total of $2.7 billion of funds in credit union funds lost on U.S. Central so far.

WASHINGTON-A CUNA task force on corporate credit unions recommended last week that corporate credit unions cease being investment houses for natural person credit unions - the genesis of their financial problems - and restrict their activities in the investment markets to being pass-throughs or broker-dealers.

The task force report comes as NCUA is collecting public comments on its proposed reforms and as more than half of the corporate are reporting losses for 2009.

The task force proposal recognizes the critical role the corporates play in the payments and settlements systems for credit unions and in other areas, and foresees some kind of structure to enable that role to continue. But it makes no definite proposals along those lines.

WASHINGTON – Growing numbers of credit union executives are calling for an NCUA investigation into the causes of the corporate credit union meltdown.

LENEXA, Kan. – A year after the takeover of U.S. Central FCU, David Dickens, the former chief investment strategist who was fired as losses began to spiral out of control at the one-time $52 billion corporate credit union, is fighting with NCUA over the terms of his severance.

WASHINGTON – A CUNA task force on corporate credit unions on Monday recommended that corporate credit unions cease being investment houses for natural person credit unions – the genesis of their financial problems – and restrict their activities in the investment markets to being pass-throughs or broker-dealers.

DULUTH, Ga. – Georgia Central CU is the latest corporate credit union to report that its exposure to losses at U.S. Central FCU pushed it into the red again in 2009.