Credit Unions With $57 Billion in Assets Seized; 3 Banks Fail

Steve_A · 03-21-2009, 09:12 AM

Two corporate credit unions, with combined assets of $57 billion, were seized by the National Credit Union Administration yesterday to stabilize a system used by 90 million customers amid a worldwide financial crisis. Three U.S. banks failed, bringing this year’s total to 20.....

http://www.bloomberg.com/apps/news?p...qrI&refer=home

peaceandlove · 03-22-2009, 01:48 AM

Catherine Austin Fitts, whom some believe should be appointed to take over Geithner's job comments:

Attack on Credit Unions?

Source: http://solari.com/blog/?p=2324

Catherine, Daily Musings and News & Commentary, March 20, 2009 at 11:03 pm

Quote:

Credit unions have provided a serious alternative to banking with big banks. Their strength in their communities commands a market share that the big banks want. So this news is ominous. Given what I know about credit unions around the country, the theory of financial problems does not make sense. Besides, we did not seize AIG, Citibank or Goldman Sachs. We just gave and lent them $12 trillion.

If you know the real story here, I would love to hear it.

U. S. seizes top credit union clearinghouse: http://www.reuters.com/article/compa...52552120090321

Excerpt:

WASHINGTON, March 20 (Reuters) - Regulators seized the top clearinghouse for U.S. credit unions, citing a critical deterioration in the finances of the provider of services to thousands of retail credit unions.

The National Credit Union Administration (NCUA) took control of U.S. Central Federal Credit Union, a huge wholesale credit union with about $34 billion in assets based in Lenexa, Kansas.

It also seized Western Corporate (WesCorp) Federal Credit Union of San Dimas, California, another corporate credit union with $23 billion in assets.

BROOK · 03-22-2009, 02:26 AM

This move was surly inevitable I saw this coming months ago...I work with many credit unions in my job....the writing was on the wall...they have to take down the little guys to strengthen the big guys
Was this not their plan...a one world Bank

alyscat · 03-22-2009, 03:08 AM

Heck, we own 80% of AIG, that's as close to seizing as we can get. These credit unions were corporate credit unions, and they seem to have had some problems - even with 57 billion in assets, they had major issues in mortgage debt and at least one of them had already received NCUA funding to climb out of their hole - and they couldn't.

alys

BROOK · 03-22-2009, 05:59 AM

peaceandlove · 03-24-2009, 06:22 PM

MORE PERSPECTIVES

U.S. Central Credit Union may form "bad bank": CEO

Sun Mar 22, 2009 7:44pm EDT

By Carey Gillam

KANSAS CITY (Reuters) - Two days after regulators seized the largest U.S. corporate credit union, the newly installed CEO said he is considering a variety of options, including setting up a "bad bank," to handle a mixture of troubled mortgage assets.

Several options are on the table at the $34 billion-asset U.S. Central Federal Credit Union, said new CEO James Nance, who quit as chief administrative officer at Icap Capital Markets Llc in New Jersey to helm the Lenexa, Kansas-based institution at the request of regulators.

In addition to setting up a separate entity, a so-called "bad bank," to take toxic assets off the books of U.S. Central, Nance told Reuters in an interview that he will look at options for securitizing the troubled assets in ways that would allow for them to be held for an extended periods, and he will explore the sale of certain assets to non-credit union buyers.

"We want to try to avoid having the situation deteriorate," said Nance, who prior to his work at Icap, oversaw asset and liability management at U.S. Central from 1993-1996.

Article continues: http://www.reuters.com/article/ousiv/idUSTRE52L1S920090322

U.S. seizes 2 big credit unions

U.S. takes over two credit unions after tests find vulnerability. U.S. Central Federal Credit Union and WesCorp have combined assets of $57 billion.

By Catherine Clifford, CNNMoney.com staff writer
Last Updated: March 20, 2009: 9:17 PM ET

NEW YORK (CNNMoney.com) -- The federal government, in its latest effort to prop up the financial system, took over two big wholesale credit unions Friday with combined assets of $57 billion.

U.S. Central Federal Credit Union in Lenexa, Kan., and Western Corporate Federal Credit Union in San Dimas, Calif., were placed under conservatorship "to stabilize the corporate credit union system and resolve balance sheet issues," according to the National Credit Union Administration.

The administration is a federal agency that regulates, charters and supervises federal credit unions.

Neither of the failed institutions serve consumers directly. As corporate credit unions, they service the credit union system. Credit unions count 90 million members nationwide.

Article continues: http://money.cnn.com/2009/03/20/news/companies/credit_unions/index.htm

FEVER I AM offers commentary regarding the Credit Union takeover and more:

Don't Panic! Toxic Asset Plan? Another way to rip you off...

Video (11:27): http://www.youtube.com/watch?v=lWjRN...e=channel_page

03-21-2009, 09:12 AM	#1
Steve_A Project Avalon Moderator Join Date: Sep 2008 Location: Northeastern Brazil Posts: 1,259	Credit Unions With $57 Billion in Assets Seized; 3 Banks Fail Two corporate credit unions, with combined assets of $57 billion, were seized by the National Credit Union Administration yesterday to stabilize a system used by 90 million customers amid a worldwide financial crisis. Three U.S. banks failed, bringing this year’s total to 20..... http://www.bloomberg.com/apps/news?p...qrI&refer=home

03-22-2009, 02:26 AM	#3
BROOK Avalon Senior Member Join Date: Oct 2008 Posts: 3,117	Re: Credit Unions With $57 Billion in Assets Seized; 3 Banks Fail This move was surly inevitable I saw this coming months ago...I work with many credit unions in my job....the writing was on the wall...they have to take down the little guys to strengthen the big guys Was this not their plan...a one world Bank

03-22-2009, 03:08 AM	#4
alyscat Avalon Senior Member Join Date: Sep 2008 Location: Washington state Posts: 743	Re: Credit Unions With $57 Billion in Assets Seized; 3 Banks Fail Heck, we own 80% of AIG, that's as close to seizing as we can get. These credit unions were corporate credit unions, and they seem to have had some problems - even with 57 billion in assets, they had major issues in mortgage debt and at least one of them had already received NCUA funding to climb out of their hole - and they couldn't. alys

03-22-2009, 05:59 AM	#5
BROOK Avalon Senior Member Join Date: Oct 2008 Posts: 3,117	Re: Credit Unions With $57 Billion in Assets Seized; 3 Banks Fail

03-24-2009, 06:22 PM	#6
peaceandlove Avalon Senior Member Join Date: Sep 2008 Location: Turtle Island Posts: 2,776	U.S. Central Credit Union may form "bad bank": CEO MORE PERSPECTIVES U.S. Central Credit Union may form "bad bank": CEO Sun Mar 22, 2009 7:44pm EDT By Carey Gillam KANSAS CITY (Reuters) - Two days after regulators seized the largest U.S. corporate credit union, the newly installed CEO said he is considering a variety of options, including setting up a "bad bank," to handle a mixture of troubled mortgage assets. Several options are on the table at the $34 billion-asset U.S. Central Federal Credit Union, said new CEO James Nance, who quit as chief administrative officer at Icap Capital Markets Llc in New Jersey to helm the Lenexa, Kansas-based institution at the request of regulators. In addition to setting up a separate entity, a so-called "bad bank," to take toxic assets off the books of U.S. Central, Nance told Reuters in an interview that he will look at options for securitizing the troubled assets in ways that would allow for them to be held for an extended periods, and he will explore the sale of certain assets to non-credit union buyers. "We want to try to avoid having the situation deteriorate," said Nance, who prior to his work at Icap, oversaw asset and liability management at U.S. Central from 1993-1996. Article continues: http://www.reuters.com/article/ousiv/idUSTRE52L1S920090322 U.S. seizes 2 big credit unions U.S. takes over two credit unions after tests find vulnerability. U.S. Central Federal Credit Union and WesCorp have combined assets of $57 billion. By Catherine Clifford, CNNMoney.com staff writer Last Updated: March 20, 2009: 9:17 PM ET NEW YORK (CNNMoney.com) -- The federal government, in its latest effort to prop up the financial system, took over two big wholesale credit unions Friday with combined assets of $57 billion. U.S. Central Federal Credit Union in Lenexa, Kan., and Western Corporate Federal Credit Union in San Dimas, Calif., were placed under conservatorship "to stabilize the corporate credit union system and resolve balance sheet issues," according to the National Credit Union Administration. The administration is a federal agency that regulates, charters and supervises federal credit unions. Neither of the failed institutions serve consumers directly. As corporate credit unions, they service the credit union system. Credit unions count 90 million members nationwide. Article continues: http://money.cnn.com/2009/03/20/news/companies/credit_unions/index.htm FEVER I AM offers commentary regarding the Credit Union takeover and more: Don't Panic! Toxic Asset Plan? Another way to rip you off... Video (11:27): http://www.youtube.com/watch?v=lWjRN...e=channel_page

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