Feds seize two large corporate credit unions

[babsbunny]

Feds seize two large corporate credit unions

http://www.mcclatchydc.com/251/story/64544.html

By Mark Davis | Kansas City Star

KANSAS CITY, Mo. — Federal regulators on Friday seized two massive corporate credit unions, with a combined $57 billion in assets.

U.S. Central Credit Union, the nation's largest corporate credit union, is a $34 billion institution based in Lenexa, Kan., a Kansas City suburb. It does not serve consumers directly, but provides services to traditional credit unions that do.

[soothsayer]

1. Why do credit unions (competitors to big banks) get seized, and all the huge corporate asshole banks

get bailed out??

[BlooInBloo]

3. Teh stupid, refusing to stop burning.

http://www.fdic.gov/bank/individual/failed/banklist.html

[BlooInBloo]

2. Most importantly....

http://www.huffingtonpost.com/2009/03/20/wescorp-us-central-regula_n_177584.html

"It said retail credit unions, which are cooperatives owned by their members, remain financially strong _ with net worth exceeding 10 percent of assets, and sustained growth in assets and membership despite the deep recession.

The NCUA staff recently completed a "stress test" of the mortgage- and other asset-backed securities held by all corporate credit unions, including U.S. Central and WesCorp, and found that "an unacceptably high concentration of risk" was contained in those two institutions, the agency said Friday. Securities held by the two have continued to lose value since late January, reducing their available cash and worsening a "loss of confidence" on the part of their member credit unions, the NCUA said."


Normal ma & pa credit unions are JUST FINE.

I heart my credit union.


EDIT: Forgot linky.