Credit unions

SAN DIMAS, Calif. – WesCorp FCU, struggling under a massive $7.6 billion loss for 2008, is looking at closing some of its branch item processing facilities as part of a major cost-cutting.

BURLINGTON, Mass. — EasCorp FCU said it raised new equity capital with an $18 million offering of preferred paid-in-capital accounts II, considered Tier One capital under generally accepted accounting principles, or GAAP.

TALLAHASSEE, Fla. — Losses continued to be reported by corporate credit unions last week, with reverberations being felt by groups that included CUNA and the National Credit Union Foundation.

WASHINGTON – It’s not only corporate credit unions that are being affected directly by their investments in membership capital shares at U.S. Central, as CUNA, which is also a member of U.S. Central, said yesterday it charged-off 23% of its MCS, and will probably take additional charges in the future.

TALLAHASSEE, Fla. – Exposure to U.S. Central FCU combined with charge-offs of mortgage-backed securities have forced more corporate credit unions to report big losses in recent days.

DALLAS – Southwest Corporate FCU became the latest corporate credit union to restate its 2008 financials to show a big loss, this one of $624.3 million.

BURLINGTON, Mass. – EasCorp FCU said it raised new equity capital with an $18 million offering of preferred paid-in-capital accounts II, considered Tier One capital under generally accepted accounting principles, or GAAP.

ALEXANDRIA, Va. – NCUA is preparing to transfer the $5.9 billion cost of the corporate credit union bailout from the National CU Share Insurance Fund to the newly created Corporate CU Stabilization Fund, which would allow credit unions to pay off the bailout charge over seven years.

COLUMBUS, Ohio – Corporate One FCU said Friday that charges related to the corporate credit union bailout erased $21.6 million of net income reported earlier for 2008 and created a $18.2 million loss instead.

LAS VEGAS — Credit unions here got their first chance to meet with the acting CEO of WesCorp, which was placed into conservatorship by NCUA earlier this year, and to get an update on what the corporate is doing to right the ship.

ALEXANDRIA, Va. – NCUA said yesterday the $3.2 billion of losses reported by credit unions was almost all related to costs associated with the corporate credit union bailout.

SAN DIMAS, Calif. – The annual report issued by WesCorp FCU last week shows losses so steep that the 1,020 credit union members have virtually no chance of recovering anything on their $2 billion of capital in the failed corporate credit union.

WALLINGFORD, Conn. – Constitution Corporate FCU said the combination of losses on its distressed mortgage securities and the write-down of its shares in U.S. Central FCU has eliminated all of its retained earnings and will cause it to start using its member capital shares to absorb additional losses.

WARRENVILLE, Ill. – Members United Corporate FCU said last week that losses of $511 million it reported the previous month erased $424.7 million of retained earnings and created negative retained earnings of $124.3 million.

ALEXANDRIA, Va. – NCUA agreed Friday to allow corporate credit unions to write-down 23% of their membership capital shares in U.S. Central FCU–instead of 63% estimated earlier–effectively giving corporates $500 million than was expected.

ALEXANDRIA, Va. – The NCUA Board yesterday approved amendments to its Temporary Corporate CU Liquidity Guarantee Program, extending the program that provides a 100% government guarantee of all unsecured short-term debt issued by corporate credit unions.

ALEXANDRIA, Va. – The NCUA Board is expected to vote in closed meeting today to extend the terms of its Temporary Corporate CU Liquidity Guarantee Program, which provides a 100% guarantee on all unsecured debt issued by the corporates.

WASHINGTON – NCUA worked behind closed doors with representatives of the Federal Reserve and the Treasury to ensure both corporates and natural person credit unions had adequate sources of liquidity available as the corporate system was showing signs of a meltdown last fall, NCUA Chairman Michael Fryzel told lawmakers yesterday during hearings on the corporate credit union bailout.

WASHINGTON – In swift action, President Obama yesterday signed into law the omnibus housing bill that also enacts the corporate credit union bailout–less than 24 hours after it was passed by Congress.

WASHINGTON – Lawmakers are expected to grill NCUA Chairman Michael Fryzel during hearings on Capitol Hill this afternoon about the failure of the nation’s two largest credit unions and what the federal regulator might have done to prevent them.