Credit unions

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.

WASHINGTON – The main credit union lobbies were expressing relief yesterday at NCUA’s move to stretch the costs of the corporate credit union bailout over seven years.

ALEXANDRIA, Va. -- The NCUA Board ths morning 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.

ALEXANDRIA, Va. -- The NCUA Board ths morning 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.

ALEXANDRIA, Va. – The NCUA Board is expected to vote this morning for a plan that would allow credit unions to pay the costs of the corporate credit union bailout in seven annual installments, instead of all at once.

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.

WASHINGTON — Credit union leaders agreed there should be a consolidation of corporate credit unions but consensus was elusive on most other aspects of a reform of the corporate system during a symposium held last week by NCUA celebrating the 75th anniversary of the Federal CU Act.

An article in Tuesday's Daily Briefing reported that U.S. Central charged off $800,000 of exposure related to Lehman Brothers and is expected to take additional charges. According to NCUA, U.S. Central wrote off all of its exposure to Lehman Brothers interest rate derivative contracts when the firm filed for bankruptcy in fall 2008 and has no residual loss exposure to any prior Lehman Brothers investment.

NEW YORK – Eight months after the collapse of Lehman Brothers Holdings corporate credit unions are chalking up millions of dollars of additional losses on their exposure to the venerable Wall Street brokerage as the huge case continues to unravel in bankruptcy court.

ATLANTA – The FDIC opted Friday to liquidate the corporate credit union-like Silverton Bank, rather than sell the failed bankers’ bank to a group of private equity firms.

DALLAS – Southwest Corporate FCU said it has introduced an Image Deposit Return service in the Federal Reserve’s 11th District and plans a nationwide roll-out next month.