Credit unions

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.

LENEXA, Kan.-When U.S. Central FCU surprised everyone last month - including NCUA - with a massive $1.1-billion loss for its recently completed fourth quarter it was precipitated by the implementation of a controversial and often confusing accounting term called other-than-temporary impaired, or OTTI.

GLENDALE, Calif.-For the same reason many believe the best way to remove a Band-Aid is quickly, a number of credit unions are saying they prefer to write down whatever their final tab will be for NCUA's Corporate Stabilization Plan.

LENEXA, Kan.-Several corporate credit unions, already weighed down by losses on their mortgage backed securities, are delaying a final accounting for 2008 as they wait to determine how much of the huge $1.1-billion loss at U.S. Central FCU will flow down to them.

YORBA LINDA, Calif.-Two national CPA firms are delivering much the same advice that was handed down to CUs at the GAC last week: Wait for more details from the NCUA and AICPA before making accounting plans regarding the Corporate Stabilization Plan.

WASHINGTON – The House is expected to vote on an overall spending bill tomorrow that will include an extension of the funding limit for the emergency credit union loan fund, the Central Liquidity Facility, until Sept. 30.

LENEXA, Kan. – When U.S. Central FCU surprised everyone last month–including NCUA–with a massive $1.1 billion loss for its recently completed fourth quarter it was precipitated by the implementation of a controversial and often confusing accounting term called other-than-temporary impaired, or OTTI.

LENEXA, Kan. – Several corporate credit unions, already weighed down by losses on their mortgage backed securities, are delaying a final accounting for 2008 as they wait to determine how much of the huge $1.1 billion loss at U.S. Central FCU will flow down to them.

WASHINGTON-NCUA's decision to inject a $1-billion capital note into U.S. Central and compel natural person credit unions to shore up the share insurance fund to the tune of an estimated $4.7 billion was a "cautious and deliberate" move to revamp the corporate structure, keep open all possibilities and ensure costs did not spiral out of control, says the head of Callahan & Associates.

PORTLAND, Ore.-If enacted, NCUA's proposed corporate bailout plan is going to push hundreds of credit unions to the edge of survivability, according to one analyst.

WASHINGTON-With their hands statutorily "tied," state regulators are mulling their options should the proposed Corporate Stabilization Plan's take effect and push scores of CUs under PCA.