Credit unions

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.

WASHINGTON – Congress was forced last week by an impasse on the omnibus spending bill in the Senate to extend emergency funding for the Central Liquidity Facility and other government agencies.

COLUMBUS, Ohio – Corporate One FCU announced Friday it has ended its relationship with Wall Street rating agencies Standard & Poors and Moody’s, as it moves to terminate its commercial paper program, a one-time source of liquidity.

WASHINGTON-Credit unions have until April 6 to file comments on NCUA's proposed Corporate Stabilization Plan, and NCUA Board Member Gigi Hyland outlined several areas on which the agency is particularly interested in getting CU input.

ALEXANDRIA, Va.-At least four corporate credit unions appear to have decided against participating in NCUA's new expanded guarantee program that requires corporates sign a supervisory agreement with NCUA, a Letter of Understanding, in exchange for coverage of all deposits by the National CU Share Insurance Fund.

ALEXANDRIA, Va. – NCUA said yesterday it has added several disclosures to its 5300 Call Report to show the expenses they accrue related to the $5 billion corporate bailout.

LENEXA, Kan. – Corporate credit union executives were muttering last week during CUNA’s annual Government Affairs Conference over the quick disappearance of $450 million in membership capital shares in U.S. Central they were forced to convert into a new form of capital, called paid-in-capital II, that now appears to be erased by U.S. Central’s subsequently announced losses for 2008.

LENEXA, Kan. – U.S. Central FCU reported yesterday its deposit base shrunk by almost $2.5 billion, or 12%, in January, when the central bank for credit unions reported its huge $1.1 billion loss for 2008 would require a cash infusion from NCUA.

ALEXANDRIA, Va. – At least four corporate credit unions appear to have decided against participating in NCUA’s new expanded guarantee program that requires corporates sign a supervisory agreement with NCUA, a Letter of Understanding, in exchange for coverage of all deposits by the National CU Share Insurance Fund.

WASHINGTON-NCUA Chairman Michael Fryzel expressed regret at the agency's $5-billion corporate credit union bailout during remarks at CUNA's Government Affairs Conference last week, but said there are no fast and easy solutions to the rescue of the corporate network.

COLUMBUS, Ohio-Corporate One FCU reported that unrealized losses on its books grew by another $21 million in December to a total of $328.1 million, one of seven corporates with large holdings of underwater securities.