Around Valentine’s Day three years ago, holders of auction rate securities fell completely out of love with the debt instruments, causing a market freeze and a slew of lawsuits against the banks with claims of misrepresentation. The fallout continues.
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.
The Securities and Exchange Commission has frozen the assets of two online payday loan companies and charged the owner with allegedly perpetrating a $47 million fraud and Ponzi scheme.
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, The Wall Street Journal reported today.
The financial crisis that wreaked havoc on the economy was "the result of human action and inaction, not of Mother nature or computer models gone haywire," a government commission that spent 18 months studying the crisis concluded.
Credit unions and other financial institutions are likely to face an added regulatory burden as a result of the regulatory overhaul bill passed by Congress this year.
Another bank that began life as a credit union has announced its plans to make an initial public offering of stock in the next few months.
The Senate last Thursday overcame strong Republican opposition and passed comprehensive regulatory overhaul legislation 60 to 39. All but one of the 58 Senate Democrats supported the measure, and all but three of the chamber's 41 Republicans opposed it.
The $227 million SharePlus Federal Bank, the former SharePlus Federal Credit Union, has filed papers with the Securities and Exchange Commission to make its initial public offering of stock.
The power of social media and its influence on growth in the financial industry is mesmerizing. However, the conspicuous absence of guidance from regulators, which may be holding back many credit unions from taking the plunge.