CUNA call-to-action targets CUs' ire on corporates

WASHINGTON (3/27/09)—A credit union call to action launched Wednesday by the Credit Union National Association (CUNA) generated thousands of communications to the federal regulator seeking more information on the decision to place two corporate credit unions (CCU) into conservatorship last week.

An early estimate by CUNA showed about 20,000 emailed inquiries were fired off within 24 hours of the CUNA request for action.

Credit unions were asked to urge each National Credit Union Administration (NCUA) board member to provide greater transparency regarding a report by Pacific Investment Management Company LLC (PIMCO) on corporate credit unions (CCU).

The PIMCO report was the basis, in part, of the NCUA's action Friday to conserve two corporate credit unions, U.S. Central FCU, Lenexa, Kan., and Western Corporate FCU (WesCorp), San Dimas, Calif. PIMCO is a leading global investment management firm.

CUNA also encouraged credit unions to push the NCUA to approve a mechanism to spread out the costs associated with recent agency actions addressing the corporate system.

The NCUA had scheduled a special closed meeting for Thursday morning to address CCU issues. The agency unveiled draft legislation Thursday afternoon that would allow the insurance costs to federally insured credit unions associated with NCUA's actions regarding corporate credit unions to be spread out over time. (See related story: New NCUA bill would spread out replenishment.)

CUNA has removed its call to action from its website.

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