While there continues to be speculation on the recipient of $10 billion in liquidity loans to two "problem" credit unions, NCUA is standing firm saying it never reveals who receives such loans.

According to the March 31, 2009 NCUSIF Preliminary Financial Highlights report, there was mention of "$10 billion represents liquidity loans to two problem credit unions" under the "Advances to Credit Unions: Share and Deposits and Loans" header. That's a staggering increase from $3.5 million as of February 2009.

"NCUA never reveals the recipients of liquidity loans," said NCUA spokesman John McKechnie, adding it is a "supervisory [matter] and [is] thus confidential."

One credit union CEO questioned the timing and the large amount of the $10 billion liquidity loans.

"There's $10 billion that appears all of a sudden. It looks like the commitment is for two large credit unions," the CEO said. "It could be the corporates. Clearly, NCUA is getting ready to do something."

There has been talk in the industry that the $10 billion could be for several large billion dollar credit unions that experienced losses in 2008 or an infusion for WesCorp and U.S. Central.

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