NCUA Liquidates Constitution Corporate FCU
The NCUA said today that on Nov. 30 it will liquidate Constitution Corporate FCU, one of the three coporates it conserved in September.
The agency is transferring Constitution's operations to Members United Bridge Corporate Federal Credit Union.
The agency said that liquidation of the Wallingford, Conn.-based financial institution is "the next step in gaining control of the mortgage-backed securities on Constitution's balance sheet to facilitate the securitization of those assets.''
The agency has sold more than $12 billion worth of notes from the five conserved corporates so far.
Constitution Corporate FCU had $1.3 billion in assets as of June 30 and was the smallest of the three corporates conserved in September. It had a $24.5 million capital deficit.
On Sept. 24, the NCUA conserved Constitution, Members United Corporate FCU and Southwest Corporate FCU. In March 2009, it conserved U.S. Central Coporate Federal Credit Union and Western Corporate Federal Credit Union. It created bridge corporates for all of them except Constitution Corporate FCU.