WASHINGTON (3/25/09)—In a CBS Radio News interview addressing the conservatorship of two corporate credit unions announced last week National Credit Union Administration (NCUA) officials said they do not foresee, at this time, a need to take similar action anywhere else within the corporate credit union network. The NCUA Friday took control of U.S. Central FCU, Lenexa, Kan., and Western Corporate FCU (Wescorp), San Dimas, Calif. CBS Radio News set up at U.S. Central FCU earlier this week to conduct an interview with the NCUA’s Keith Morton and John Kutchey. Kutchey is acting director of the Office of Examination and Insurance and Morton is director of the agency’s Region IV. The interview was conducted Monday afternoon by Barry Bagnato, who is working on “a broad array of stories concerning the recession” for CBS, according U.S. Central. U.S. Central reported that questions focused on:
* Why the conservatorship was necessary; * The impact of assessments on natural-person credit unions to replenish the National Credit Union Share Insurance Fund (NCUSIF); * The advance notice of proposed rulemaking (ANPR) seeking comment on the structure of the corporate system; * What happened to place U.S. Central in its current position; and * The possibilities other corporate credit unions could face conservatorship.
The NCUA officials explained that the value of mortgage-backed securities held in portfolio decreased because of the current recession and plummeting home values across the nation. Those securities were, however, highly rated when purchased, they added. Kutchey and Morton underscored that consumers will see few changes if any as a result of the NCUA's action. They added credit unions remain well capitalized, with some experiencing loan and asset growth at a time most financial institutions are struggling.