Regulatory & Compliance

For the last several years, U.S. Central Federal Credit Union has been one of NACUSO's "platinum partners." However, it's too early to tell whether the corporate's recent conservatorship will have an impact on the alliance.

The $34 billion U.S. Central Federal Credit Union and the $23 billion Western Corporate Federal Credit Union both failed NCUA stress testing, but agency spokesman John McKechnie said the rest of the corporate network passed.

NCUA Executive Director David Marquis said WesCorp ignored third-party vendor portfolio valuations in favor of its own modeling, which used more optimistic assumptions.

CUNA President/CEO Dan Mica is scheduled to testify before the Senate Banking Committee tomorrow to discuss how credit unions would like to see any regulatory restructuring affect them.

The credit union industry is familiar with interim U.S. Central Federal Credit Union CEO James Nance. However, Western Corporate Federal Credit Union's new CEO Philip Perkins is relatively unknown to the industry.

The NCUA's corporate stabilization Webinar presenters provided insight today regarding the agency's analysis of corporate investment portfolio values.

Credit unions finalizing 2008 annual reports will have to make some 11th-hour adjustments to their year-end financials, thanks to Friday's conservatorship of the $34 billion U.S. Central FCU and the $23 billion WesCorp.

Credit union leaders Monday were voicing support, albeit reluctant, for the NCUA takeover of two corporate credit unions.