Credit unions

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.

WASHINGTON – The House voted passage this afternoon of a bill passed by the Senate last week which will enact the corporate credit union bailout.

WASHINGTON – The House voted passage this afternoon of a bill passed by the Senate last week which will enact the corporate credit union bailout.

WASHINGTON – The House could vote as soon as today on a bill to give NCUA broad new powers to bail out the corporate credit union network, virtually rendering moot hearings scheduled for tomorrow on the new corporate bailout bill.

LENEXA, Kan. – Last week’s first quarter report by U.S. Central FCU gave corporate credit unions a glimmer of hope on recovering an additional $500 million of membership capital shares in their failed corporate.

CLEVELAND — While Lee Butke, president of Corporate One FCU, told Credit Union Journal that member support for Corporate One continues to be strong, he acknowledged the frustration credit unions are feeling, kicking off a session at the Ohio league's annual meeting here by asking, "Does anyone have rocks to throw at me?"

WASHINGTON — A bill introduced in the House last week would allow credit unions to stretch out the costs of the $6-billion corporate credit union bailout for as long as eight years, adding impetus to the bid to ease the burden on the 7,800 natural person credit unions that are paying the freight.

HIGHTSTOWN, N.J. — A survey of its affiliated credit unions by the New Jersey Credit Union League regarding corporate credit unions and NCUA's Stabilization Plan found:

LENEXA, Kan. – U.S. Central FCU reported yesterday it has increased the expected charges on its investment portfolio for 2008 from $1.2 billion reported in January to a whopping $3.8 billion.

WASHINGTON – The new corporate credit union bailout bill introduced in the House yesterday is widely expected to be combined with one or more other bills seeking to ease the burden of the $6 billion corporate plan on credit unions.

WASHINGTON – A new bill introduced in the House this morning would allow credit unions to stretch out the costs of the corporate bailout for as long as eight years and it would provide as much as $30 billion in new funding to NCUA to help stem a systemic crisis.