2 corporate credit unions taken over by government

[BlueStateSaint]

At least these credit unions don't deal with my credit union . . .



2 corporate credit unions taken over by government

Regulators take over 2 big wholesale credit unions, seek to stabilize corporate credit unions
Marcy Gordon, AP Business Writer
Friday March 20, 2009, 9:59 pm EDT

WASHINGTON (AP) -- 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, Kan., and Western Corporate Federal Credit Union, in San Dimas, Calif. 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."

The financial services provided by the two corporate credit unions "will continue uninterrupted" and there will be no direct impact on the 90 million members of retail credit unions nationwide, the NCUA said in a news release.



http://finance.yahoo.com/news/2-corporate-credit-unions-apf-14707022.html

[thundley4]

I for one do not like this at all.  I'm wondering how many people had moved money from banks to credit unions and how much money was getting out from under the governments control.   Maybe I need a tin foil hat, but why hasn't there been anything mentioned about credit union problems before this?

[Attero Dominatus]

I for one do not like this at all.  I'm wondering how many people had moved money from banks to credit unions and how much money was getting out from under the governments control.   Maybe I need a tin foil hat, but why hasn't there been anything mentioned about credit union problems before this?

I wouldn't be surprised that Obama and the Jackass Party (and the RINO quislings) want their chance go all Hugo Chavez on the economy, and by extension, this country.

[rich_t]

I wouldn't be surprised that Obama and the Jackass Party (and the RINO quislings) want their chance go all Hugo Chavez on the economy, and by extension, this country.

Of course they do.  It's been their plan for 50 damn years.