Now comes the hard part. As tumultuous as the House subcommittee hearing on raising the cap on member business lending was, the really difficult battle will take place in the months ahead.
See you in court. After failing to reach an agreement with two of the largest investment bank to recover losses from mortgage-backed securities sold to corporate credit unions, the NCUA last week filed civil lawsuits against RBS Securities, a Royal Bank of Scotland unit, and J.P. Morgan Securities. The agency is...
Experienced litigators in such matters retained by agency, which declines to speculate on costs.
The NCUA has threatened to sue four investment banks if they don’t refund $50 billion from the sale of mortgage-backed securities to five corporate credit unions that the agency conserved last year, according to several sources within the credit union industry.
Credit unions portray themselves on Capitol Hill as well-managed, conservative financial institutions. It's not clear whether the necessity for the NCUA to rescue several corporate credit unions will change that reputation.
As the nation's budget deficit continues to grow, the government may be looking for new sources of revenue. Therefore, formerly sacred cows such as credit unions' tax-exempt status may go the way of VCRs and rotary phones.
The industry's latest corporate crisis wound up again getting national attention Monday night in a segment on Fox Business Network featuring interviews with CUNA President/CEO Bill Cheney and one of the Wall Street Journal writers of "bailout" fame.