CUNA News Now: NCUA update: U.S. Central, WesCorp coping with liquidity issues

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ALEXANDRIA, Va. (11/3/09)--In its latest update on the status of the corporates, the National Credit Union Administration (NCUA) reported that "normal operations continue without interruption" at U.S. Central FCU (U.S. Central) and Western Corporate FCU (WesCorp) and both corporate credit unions, with the help of the agency, "have been effective in managing the seasonal liquidity pressures that occur during this time of the year."

Average share balances for the corporates have "remained relatively flat, removing some measure of liquidity pressures," the NCUA added.

The corporates also reported on their Other-Than-Temporary-Impairment (OTTI) charges for the recently-passed third quarter of 2009, with U.S. Central reporting a total of $320 million and WesCorp reporting a total of $356 million.

These charges "have fully exhausted Paid-in-Capital (PIC) I and PIC II balances and depleted MCS to $140 million as of September 30, 2009" for U.S. Central and "have fully exhausted all PIC and MCS balances, and created a retained earnings deficit of $4.6 billion as of September 30, 2009" for WesCorp, the NCUA reported.

Both U.S. Central and WesCorp have issued medium term notes to fund a total of $8.2 billion in outflows that will occur due to Credit Union System Investment Program (CUSIP) funds that will mature in January, February, and March of next year.

CUSIP funds are issued under the Temporary Corporate Credit Union Loan Guarantee Program (TCCULGP).

The NCUA in the release also confirmed that it will present its in-development proposed corporate credit union rule at its upcoming board meeting, scheduled for November 19th.

"The proposed rule reflects a comprehensive review of the existing corporate regulations," and "incorporated feedback obtained" from recently held online and live town hall meetings, the NCUA said.



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	News Now LiveWire Most CUs will provide wage increases for at least some of their employees, according to CUNA's just-released Small CU Staff Salary Survey. 11 hours ago St. L Post Dispatch on GAO report:Consumers may not benefit from altering Interchange system;would cut card competition. http://ow.ly/ETyX 12 hours ago CUNA's Hampel: Consumer holiday spending will be up slightly from last year. See Tues NN. 16 hours ago NCCUL and WOCCU met with Romanian CUs this week. The CUs are experiencing growth and want to increase their public relations efforts. 4 days ago Kent Buckham has been named by NCUA as director of the newly created Office of Consumer Protection. The 7-person dept. launches in Jan. 4 days ago Sign up; more tweets... NCUA update: U.S. Central, WesCorp coping with liquidity issues ALEXANDRIA, Va. (11/3/09)--In its latest update on the status of the corporates, the National Credit Union Administration (NCUA) reported that "normal operations continue without interruption" at U.S. Central FCU (U.S. Central) and Western Corporate FCU (WesCorp) and both corporate credit unions, with the help of the agency, "have been effective in managing the seasonal liquidity pressures that occur during this time of the year." Average share balances for the corporates have "remained relatively flat, removing some measure of liquidity pressures," the NCUA added. The corporates also reported on their Other-Than-Temporary-Impairment (OTTI) charges for the recently-passed third quarter of 2009, with U.S. Central reporting a total of $320 million and WesCorp reporting a total of $356 million. These charges "have fully exhausted Paid-in-Capital (PIC) I and PIC II balances and depleted MCS to $140 million as of September 30, 2009" for U.S. Central and "have fully exhausted all PIC and MCS balances, and created a retained earnings deficit of $4.6 billion as of September 30, 2009" for WesCorp, the NCUA reported. Both U.S. Central and WesCorp have issued medium term notes to fund a total of $8.2 billion in outflows that will occur due to Credit Union System Investment Program (CUSIP) funds that will mature in January, February, and March of next year. CUSIP funds are issued under the Temporary Corporate Credit Union Loan Guarantee Program (TCCULGP). The NCUA in the release also confirmed that it will present its in-development proposed corporate credit union rule at its upcoming board meeting, scheduled for November 19th. "The proposed rule reflects a comprehensive review of the existing corporate regulations," and "incorporated feedback obtained" from recently held online and live town hall meetings, the NCUA said. More Washington
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