Credit unions

NATIONAL HARBOR, Md. – Credit union executives are doubtful the $6 billion tab they will be paying for the corporate bailout over the next seven years will be enough to resolve the corporate meltdown and most are expecting additional charges.

SAN DIMAS, Calif. — Credit union executives are angry at the payout of Bob Siravo, the former CEO of WesCorp FCU, who received a $6 million payout after he was fired when NCUA took the $34 billion corporate under conservatorship.

BIRMINGHAM, Ala. — With the returns being paid by corporate credit unions lagging some other alternatives, the question of whether to invest in corporates varies among natural-person CUs, according to CEOs and CFOs interviewed by Credit Union Journal.

SAN DIMAS, Calif. – Credit union executives are angry at the payout of Bob Siravo, the former CEO of WesCorp FCU, who received a $6 million payout after he was fired when NCUA took the $34 billion corporate under conservatorship.

WASHINGTON – NCUA Chairman nominee Deborah Matz promised stronger oversight of the corporate credit union system during confirmation hearings before the Senate Banking Committee yesterday and denied a role in the agency’s easing of corporate restrictions.

ALEXANDRIA, Va. – NCUA declared that its Temporary Corporate CU Share Guarantee Program, enacted to stem an outflow of funds from corporate credit unions, will cover accrued dividends posted before the failure of any corporate participating in the program.

ALEXANDRIA, Va. — The NCUA Board last week began a hurried bid to stop credit unions from converting to private deposit insurance in order to escape assessments for the corporate credit union bailout.

ALEXANDRIA, Va. — The NCUA Board this morning began a hurried bid to stop credit unions from converting to private deposit insurance in order to escape assessments for the impending NCUSIF premium.

ALEXANDRIA, Va. – The NCUA Board will begin efforts Thursday to plug a loophole in the agency’s regulations that could allow credit unions to avoid paying their share of the $6 billion corporate bailout by converting to private deposit insurance.

LENEXA, Kan. – Credit unions will have to wait longer still to close their books for 2008 because U.S. Central FCU said last week it still is not ready to issue its audited financials for the year.

The following article, part of CU Journal's July 13 Bonus Content, is an extended version of the way it appeared in print.

ALEXANDRIA, Va. – Newly released minutes of NCUA closed Board meetings earlier this year show the credit union regulator vastly under-estimating losses at U.S. Central FCU, even as it had a full-time examiner housed at the one-time $50 billion central bank for credit unions.

ALEXANDRIA, Va. – NCUA said yesterday it formally transferred the entire $6 billion corporate bailout program, including the emergency assistance for U.S. Central FCU and WesCorp FCU and responsibility for the Temporary Share Guarantee and Temporary Corporate CU Liquidity Guarantee programs from the National CU Share Insurance Fund to the newly formed Corporate CU Stabilization Fund.

ALEXANDRIA, Va. – The expected consolidation and recapitalization of the corporate credit union system, hoped for by the end of 2009, is not expected to be enacted until the spring of 2010, at the earliest.

COLUMBUS, Ohio – Corporate One FCU reported a $9.6 million loss last week for the first five months of the year after taking $17.1 million in charges against troubled mortgage backed securities.

LENEXA, Kan. – Both U.S. Central FCU and WesCorp FCU said they have temporarily shuttered popular loan programs in recent weeks, putting increasing pressure on the secondary market for credit union loans.

DALLAS – Southwest Corporate FCU yesterday reported a $317 million in reduction of capital for May, leaving it with just $13.7 million in retained earnings, meaning it will likely require a depletion of member capital.

WARRENVILLE, Ill. – Even as credit unions are digesting the new legislation that will allow them to stretch the costs of the corporate credit union bailout over seven years, new charges appear to be heading their way in the form of their own corporate’s diminished capital.

WARRENVILLE, Ill. — Members United Corporate FCU, which reported a $511- million loss last month, said Friday it is embarking on its second round of lay-offs, eliminating 39 full-time positions and closing its Minnesota office.

ALEXANDRIA, Va. — The NCUA Board last week reversed its corporate bailout charges and passed a new bailout plan that will give credit unions seven years to repay the $5.9-billion cost.