The NCUA said today that on Nov. 30 it will liquidate Constitution Corporate FCU, one of the three coporates it conserved in September.
The agency is transferring Constitution's operations to Members United Bridge Corporate Federal Credit Union.
The agency said that liquidation of the Wallingford, Conn.-based financial institution is "the next step in gaining control of the mortgage-backed securities on Constitution's balance sheet to facilitate the securitization of those assets.''
The agency has sold more than $12 billion worth of notes from the five conserved corporates so far.
Constitution Corporate FCU had $1.3 billion in assets as of June 30 and was the smallest of the three corporates conserved in September. It had a $24.5 million capital deficit.
On Sept. 24, the NCUA conserved Constitution, Members United Corporate FCU and Southwest Corporate FCU. In March 2009, it conserved U.S. Central Coporate Federal Credit Union and Western Corporate Federal Credit Union. It created bridge corporates for all of them except Constitution Corporate FCU.
Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.
Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking credit union news and analysis, on-site and via our newsletters and custom alerts
- Weekly Shared Accounts podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the commercial real estate and financial advisory markets on our other ALM sites, GlobeSt.com and ThinkAdvisor.com
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.