Friday Night Bank Bust Special: The Credit Union Edition

[marmar]

Regulators seize two large corporate credit unions
By John Letzing

Last update: 7:38 p.m. EDT March 20, 2009


SAN FRANCISCO (MarketWatch) -- The National Credit Union Administration Board said Friday it has placed two large corporate credit unions into conservatorship "to stabilize the corporate credit union system and resolve balance sheet issues." The NCUA said Lenexa, Kan.-based U.S. Central Federal Credit Union and San Dimas, Calif.-based Western Corporate were placed into conservatorship "to protect retail credit union deposits and the interest of the National Credit Union Share Insurance Fund." U.S. Central has roughly $34 billion in assets and WesCorp has $23 billion in assets, the NCUA said. Corporate credit unions are chartered to act as a sort of clearinghouse for credit unions serving consumers.


http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B9304ED67%2DF576%2D450B%2D9FEC%2D1999B6FEEDF3%7D

[originalpckelly]

1. That story is not totally accurate, US Central is more important than the other.

It's a wholesale credit union, which does business with corporate credit unions, and those corporate credit unions do business with natural person credit unions, and those are the normal credit unions everyone does business with in the general public.

This looks like a gigantic deal for the credit unions, it'd be kind of like the Fed being seized or something, because these are the bankers banks, were they for profit institutions.