Western and Central - Federal Credit Unions seized

The first two Credit Union failures of 2009:

www.foxbusiness.com...

Friday, March 20, 2009
Two Large Corporate Credit Unions Seized by Regulators

Lauren Covello
FOXBusiness

Federal regulators seized two of the nation’s largest corporate credit unions late Friday after discovering the institutions' losses on mortgage-related securities were greater than previously believed, the Wall Street Journal reported.

U.S. Central Corporate Federal Credit Union and Western Corporate Federal Credit Union were taken into conservatorship by federal regulators. The two institutions, which provide services not to the general public, but to retail credit unions, have a total of $57 billion in assets, the paper reported.

Michael E. Fryzel, chairman of the National Credit Union Administration, said that the government’s swift action was necessary to ensure the stability of both the credit union system and the insurance fund responsible for backing up retail-credit union deposits, according to the Journal.

The two institutions, Fryzel said, weren’t accurately estimating their losses and put the system at risk. Fryzel said top management at both institutions would be replaced, the Journal reported.

Nine Credit Unions failed in 2008
bankimplode.com...

1. West Hartford Credit Union
   
2. High Desert Federal Credit Union
   
3. N&W Poca Division Federal Credit Union
   
4. TEXDOT-WF Credit Union
   
5. Interfaith Federal Credit Union Closes
   
6. St. Luke Baptist Federal Credit Union
   
7. Huron River Credit Union
   
8. Green Tree Federal Credit Union
   
9. Sharebuilders Federal Credit Union
   
   
   [edit on 22-3-2009 by Dbriefed]

It's like watching a plane crash in slow motion.

I've been keeping a close eye on the news this weekend, and am very excited to see how the stocks do tomorrow. I expect a upward rise in the beginning for good hope, then reality around midday to just break it dow.