Community | March 21, 2009 | 10 comments

Feds seize 2 corporate credit unions

source: http://www.msnbc.msn.com/id/29812143/

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WASHINGTON - Federal regulators on Friday seized control of two large institutions that provide wholesale financing for U.S. credit unions, a move they say was needed to stabilize the credit union system.

The National Credit Union Administration said it has taken over and put into conservatorship the two corporate credit unions, U.S. Central Federal Credit Union, based in Lenexa, Kansas, and Western Corporate Federal Credit Union, in San Dimas, California. U.S. Central has about $34 billion in assets while Western Corporate, known as WesCorp, has an estimated $23 billion in assets.

A conservatorship enables the government to operate a financial institution. Corporate credit unions provide financing and investment services to the much larger population of retail credit unions. Some of the 28 corporate credit unions in the U.S. have sustained steep losses on paper from the depressed value of the mortgage-linked securities they hold.

The NCUA, which oversees some 7,800 federally insured credit unions, said it "will continue to take any and all steps necessary to preserve a well-functioning system of corporate credit unions and to protect the assets of (retail credit unions) and their members during the ... financial market dislocation."

End of Excerpt

Source: MSNBC
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10 comments // Feds seize 2 corporate credit unions

  • Incredulous
    • 0
      Incredulous  

    • ridiculous courage...how can you not see the connection between the dumb ass policies of the last 8 years and the current crisis? it is just amazing to me how willfully ignorant people can be.

      The IDIOTS did not refuse to evacuate, they didn't have the means to evacuate, something we have since learned by paying attention to the fact that many of those stranded relied exclusively on public transportation, a growing reality in many large urban areas.

      Second, you had an administration that was too busy fueling the defense contract industry (an industry that is heavily populated by his supporters and friends), to invest public funds into maintaining public infrastructure, ie., the dumb ass knew the levies were bad, he just didn't care.

    • 2 years ago
  • courage
    • 0
      courage  

    • He is the president isnt he?Everything during the last 8 years was Bush's fault wasnt it?Hell he aimed a hurricain at NewOrleans then FORCED idiots to refuse to evacuate.

    • 2 years ago
  • unclecharlie
    • 0
      unclecharlie  

    • Well, actually, sometimes it's just a whole lot easier to blame things on Obama. A bad case of the shits? Blame it on Obama!....The highway construction and detours? Blame it on Obama.....See how easy it is? It doesn't solve these problems necessarily, but now, at least, we know who to blame!! Wheee!!

    • 2 years ago
  • kennymotown
  • courage
    • 0
      courage  

    • The Obamites will be taking your 401k's next and then your personel savings.Soon everything will be owned by our masters in Washington.Hope ya like your Change.

    • 2 years ago
  • unclecharlie
    • 0
      unclecharlie  

    • Well, if the credit unions go, there goes the entire US economy- the banks- okay, but if you see the credit unions failing, you know the USA is finished.

    • 2 years ago
  • ras_menelik
  • 1percent
    • 0
      1percent  

    • This is just the beginning of the bank failure tsunami.

      Right now the water is just starting to recede prior to the next wave.

      Any institution dealing with fiat money is not safe.

      Pareo Nullus

    • 2 years ago
  • kennymotown
    • 0
      kennymotown  

    • This is surprising I thought the credit unions being credit unions with a different concept of banking were the stable end of the banking system.

    • 2 years ago
  • pjacobs51
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