Credit unions

PLANO, Texas — Southwest Corporate reported tremendous growth it its remote deposit services during 2008. The number of credit unions participating grew 57% as 160 new credit unions joined the program, elevating the year-end total to 442.

WASHINGTON — NCUA Chairman Michael Fryzel visited top lawmakers in the House and Senate to kick off a push for a new corporate credit union bailout fund.

ALEXANDRIA, Va. — While there is some early agreement that a consolidation of corporates lies ahead, the question has become which corporates should survive and which ones should not?

ALEXANDRIA, Va. — There was growing consensus last week that whatever the future might hold for corporate credit unions, there will be fewer of them.

SAN DIMAS, Calif.–WesCorp has cancelled its annual Future Forum and CFO Forum conferences, and also plans to replace its annual meeting with a town hall meeting scheduled for the Sheraton Fairplex Hotel in Pomona, Calif. on May 18.

SAN DIMAS, Calif. – Former members of the board of Western Corporate FCU (WesCorp), who were removed as the result of NCUA’s conservatorship of the corporate credit union, have issued a statement saying they have voted unanimously against contesting that decision.

WALL STREET – Standard & Poors said yesterday it lowered its ratings on six corporate credit unions in light of the trickle-down effect of the failure of U.S. Central FCU, which forced all corporates to charge-off their capital in U.S. Central.

ALEXANDRIA, Va. – As a growing number of executives and volunteers call for the consolidation of the corporate credit union system the big question being raised is: which corporates should survive and which ones should not?

WASHINGTON – NCUA Chairman Michael Fryzel visited top lawmakers in the House and Senate Friday to kick off a push for a new corporate credit union bailout fund.

ALEXANDRIA, Va. – A growing consensus of credit union executives and volunteers is calling on NCUA to scrap the three-tiered credit union system by liquidating U.S. Central FCU and consolidating the 26 other corporate credit unions into as few as three regional corporates.

The March 31 edition of Credit Union Journal's Daily Briefing indicated Members United Corporate FCU's has unrealized losses of $3 billion. The most recent numbers available from the corporate report unrealized losses at $2 billion as of December 31, 2008. Updated numbers are not yet available from Members United.

VIENNA, Va. – In light of the growing costs of the corporate credit union bailout, the nation’s largest credit union call for the elimination of the corporate system.

COLORADO SPRINGS – Ent FCU, one of the best-run large credit unions, said yesterday that last week’s failure of U.S. Central FCU and WesCorp FCU will force it to take an additional $7 million charge against its 2008 earnings, wiping out 90% of its net income for the year and leaving it with a net of just $2.6 million.

WASHINGTON – The Senate Banking Committee endorsed a measure yesterday that would provide as much as $24 billion in funding for the National CU Share Insurance Fund on an emergency basis, moving ahead with help for NCUA’s corporate credit union bailout.

NORWALK, Conn. – Representatives of the corporate credit union system, buried under billions of dollars of mark-to-market losses, are lobbying the Financial Accounting Standards Board to amend the rules in short time so they can shed some of these losses.

ALEXANDRIA, Va. – NCUA said last week it stripped lucrative severance agreements and bonuses scheduled for ousted executives at U.S. Central FCU and WesCorp FCU, after the nation’s two largest corporate credit unions were taken under conservatorship on March 20.

WASHINGTON – The credit union lobby was enthusiastic about NCUA’s new proposal for a separate fund to finance the corporate credit union buyout, but some lobbyists were wondering if the proposal will be large enough to complete the job.

WASHINGTON – CUNA, which played a lead role in governing U.S. Central FCU, said it would seek congressional hearings, appeal to the Obama administration or even launch a legal challenge of last week’s conservatorships of U.S. Central and WesCorp FCU unless NCUA is forthcoming with the controversial consultant’s report that prompted the unprecedented regulatory actions.

ALEXANDRIA, Va. – Lobbying by NCUA Board member Gigi Hyland to be appointed chairman of the three-member panel is growing complicated by Hyland’s ties to the corporate credit union system, for which she once served as chief lobbyist.

SAN DIMAS, Calif. – Credit union executives are expressing shock at last Friday’s NCUA takeover of WesCorp FCU, saying the credit union agency may have acted precipitously in conserving the $23 billion institution and wiping out as much as $2 billion of their capital.