Credit unions

DALLAS – The corporate credit union network, already holding billions of dollars of distressed mortgage backed securities, was working last week to determine potential losses related to its ties with Lehman Brothers Holdings, the venerable Wall Street brokerage that filed for bankruptcy two weeks ago.

WASHINGTON - Corporate CUs were weighing the pros and cons last week of the massive government bailout of the mortgages markets, which would ease some of the strain of growing losses on their mortgage securities portfolios.

By Ed Roberts, Washington Bureau Chief

LENEXA, Kan. - The travails of the financial markets the last two weeks have sent a handful of corporate credit unions on an up-and-down ride, lifting prospects, then depressing them, for billions of dollars in underwater mortgage securities they hold.

GREENSBORO, N.C. - The nation’s corporate credit unions say they have ramped up communications with natural-person credit unions aimed at addressing any concerns over the state of their financial health.

ALEXANDRIA, Va. - NCUA last week said the declining value of mortgage backed securities held by corporate credit unions has prompted it to reclassify membership capital share accounts as equity.

Southwest Corporate

WASHINGTON - The corporate CU network has found itself in the news in recent months as a result of how the ratings agencies view their balance sheets, the performance of certain investments, and other issues. But Brad Miller, executive director of the Association of Corporate Credit Unions, said he believes the chance unrealized losses will become realized losses is “negligible.”

WALL STREET - Fitch Ratings put two more corporate CUs, Southwest Corporate FCU and Constitution State FCU, on its Negative Watch because of growing losses in the value of their mortgage backed securities portfolios.

MIDDLETOWN, Penn. - Mid-Atlantic Corporate FCU has created a new CUSO, Sollievo Group LLC, to provide retirement programs, insurance and benefits services to credit unions.

PLANO, Texas - As economic stimulus checks and tax refund checks hit mailboxes, the question credit unions should be asking themselves right now is, “is it time to reprice our savings accounts?”

DULUTH, Ga. — The good news: some credit unions have grown anywhere from 10% to 30% in asset size over the last two months. The bad news: what to do with all that extra cash?

WARRENVILLE, Ill.–Just as natural person credit unions are billing themselves as trusted financial advisers, corporates want to get the word out that they, too, differentiate themselves as being the trusted source to whom credit unions can turn for disinterested advice.

DALLAS - The confidence level among credit union executives continued to plummet in the first quarter, according to the quarterly survey of credit union CEOs by Southwest Corporate FCU.

WASHINGTON - When corporate credit unions shortly release their 2007 year-end financials, it is not expected most will be reporting any significant losses as a result of failed investments in mortgage-backed securities, according to a spokesperson.