The "very severe earnings hit" on credit unions by NCUA's corporate takeovers should now force the Treasury and Congress to come up with a CU aid package, the president/CEO of The Golden l CU of Sacramento said Monday.

"It's no longer a choice but an absolutely necessity" that Treasury and Congress craft a financial relief program," said Terry Halleck, expressing deep disappointment" at NCUA's bold action, which she described as "drastic" and injurious to CUs, particularly in her own state as well as in Florida, Nevada and Arizona. The cost to The Golden 1 based on the two assessment hits will result in a $76 million loss of capital, she said.

Echoing a more optimistic tone on Treasury actions was David Adams, the president/CEO of the Michigan Credit Union League, who said the Treasury's announcement of using public and private funds top buy up toxic mortgage-backed securities "would be a very positive development if credit unions can gain access to that program." Also a positive development, he said, is new FASB reporting on market-to-market accounting, which also would provide relief.

Despite the attempt to find silver linings, many CU executives expressed dismay at the latest turn of events, but said they were ready to take huge earnings lumps. However, one Utah CEO, Mike Milovich of Eastern Utah Community CU in Price, said a major lesson learned was the danger of "corporate credit unions investing in other corporates." He said unfortunately 90% of credit unions will be "underwater for the rest of the year." Including his. "This is the first time in 13 years that we will have a loss."