Regulators Seize Control of Two Largest Corporate Credit Unions

Wall Street Journal ^ | 20 Mar 2009 | WSJ

[brydic1]

From Wikipedia: "U S Central Federal Credit Union is the largest corporate credit union in the United States. Unlike consumer driven credit unions (referred to as “natural person” credit unions in the industry), US Central provides its services only to other corporate credit unions, in effect acting as the “corporate credit union's credit union”. The organization was founded in 1974.

US Central does not serve consumers directly, a role fulfilled by consumer credit unions, it was instead established to serve the credit union industry by providing opportunities for investments through government approved instruments and providing liquidity (credit) needs to regional and state corporate credit unions which need them. US Central also provides other industry standard services such as payment systems, Electronic Funds Transfer Services and item processing. The organization also provides economic services and forecasts specific to the credit union industry. Many of its operations and services parallel that of a central bank, except it serves corporate credit unions rather than commercial banks."

From the above I gather it is the central bank of all credit unions. I know that our credit union is required to put a portion of our reserve with corporate credit union. Perhaps that corporate is a subsidiary of this big credit union.

[abb]

From the above I gather it is the central bank of all credit unions. I know that our credit union is required to put a portion of our reserve with corporate credit union. Perhaps that corporate is a subsidiary of this big credit union.

Maybe the larger credit unions do business with US Central. But I know we have no interaction with them, except that we have to pay into the NCUA insurance fund that guarantees deposits.

[rabscuttle385]

*Ping!*

[GOPJ]

It’s bank closing Friday - do you know where your money is?

[Travis McGee]

“Several brokerage houses tumbled; blue-sky investment companies formed during the happy bull market days went to smash, disclosing miserable tales of rascality; over a thousand banks caved in during 1930, as a result of marking down both of real estate and of securities; and in December occurred the largest bank failure in American financial history, the fall of the ill-named Bank of the United States in New York.”

~~"Only Yesterday: An Informal History of the 1920’s" by Fredrick Lewis Allen

[Oldeconomybuyer]

bttt

[1010RD]

Yes, the “stress test” another govt created wealth destroyer to add to the existing pile of capital-crushing regulation already imposed by the DC meddlers.