Credit unions

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.

LAS VEGAS – The early reaction to NCUA’s decision to place U.S. Central and WesCorp into conservatorship was perhaps best summed up by Brad Beal: “Although I don’t have access to all the details, I suspect it was probably necessary, given the circumstances. I would hope, though, that NCUA will explore all options to cover these losses, including going to Congress, before placing the full burden on credit unions.”

WASHINGTON – The leading credit union entities are uniting behind a plan that would allow NCUA to stretch out the assessment to pay the costs of the corporate bailout–now $5.9 billion and growing–over as many as eight years.

WALL STREET – Fitch Ratings yesterday slashed its ratings on eight corporate credit unions it said will have most of their capital wiped out by Friday’s takeover of U.S. Central FCU.

ALEXANDRIA, Va. – The credit union community was buzzing yesterday about the weekend takeovers of the nation’s two largest corporate credit unions, with several corporate credit union executives wondering whether any of the other troubled corporates will follow U.S. Central FCU and WesCorp FCU into conservatorship.

LENEXA, Kan. – Billions of dollars of losses from this weekend’s takeover of U.S. Central FCU and WesCorp FCU will cascade on down through the three tiers of the credit union system: from U.S. Central at the top, to its 26 corporate members; and down to the 8,100 regular credit unions, known as natural person credit unions, which will be forced to take it out of their own members.

ALEXANDRIA, Va. – Every federally insured credit union will be paying a share of Friday’s takeover of U.S. Central FCU and WesCorp FCU, which will add at least $1.2 billion to the $4.7 billion corporate credit union bailout, NCUA said.

WASHINGTON – NCUA is asking Congress for vast new authority to prevent a further meltdown of the credit union system.

WASHINGTON – Leaders of the credit union movement will ask the Senate Banking Committee this afternoon for help paying for the $5 billion corporate credit union bailout by allowing NCUA to stretch out the assessment for the bailout to as long as eight years and to expand the powers of the $41 million emergency credit union loan fund, known as the Central Liquidity Facility, to assist in the rescue.

WASHINGTON – The massive $5-billion cost of the corporate credit unions bailout is giving increasing numbers of credit union executives second thoughts on the industry’s position that it doesn’t need a federal bailout.

ALEXANDRIA, Va. – A consultant’s report commissioned by NCUA recommends that the natural person credit unions be used to recapitalize the failing corporate credit union system.