Not satisfied with the NCUA's level of transparency on the financial problems of U.S. Central and WesCorp, some of the leaders of the largest credit unions are trying to raise $250,000 to study the securities held by the two corporates.
The study's goal would be "catalogue the securities held by the two coprorates and perform an in-depth analysis of a few of the most troubled securities," National Credit Union Roundtable Advisory Chairman Rod Staatz wrote in an e-mail sent to other Roundtable members obtained by Credit Union Times.
He asked for $2,000 from each of the 250 credit unions in the Credit Union Roundtable, which is made up of the largest credit unions by asset size.
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Staatz, president/CEO of State Employees Credit Union of Maryland, said the additional information will "empower credit unions with more information to better deal with the situation and minimize our long-term costs. The information developed in this study will be made available to all Roundtable credit unions, CUNA and NAFCU."
CUNA and NAFU were among those that pushed for more detailed information on the PIMCO report on U.S. Central that NCUA authorized when it began its rescue efforts of the corporates in January. In its summary of the report, the agency said it believes the real estate market won't bottom out until 2010, with home values expected to decline another 15%. That's more than 50% of the 27% value decline experienced to date, and explains why the agency expects future losses on investments collateralized by residential mortgages.
Staatz was not available for comment.
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