What is the NCUA Stabilization Plan?
For several years the NCUA has been monitoring the financial condition of the 38 corporate federal credit unions that make up the corporate credit union system. During the latter half of 2008 increasing liquidity pressures in the system brought about by investment market losses in the system gave the NCUA cause to take swift and definitive action to prevent a potential liquidity and stability crisis. This plan was announced on January 28, 2009. On March 20, 2009, the NCUA took further action by placing U.S. Central Corporate Federal Credit Union (“US Central”) of Lenexa, Kansas, and Western Corporate Federal Credit Union (“WesCorp”) of San Dimas, California, into conservatorship. What is a Corporate Credit Union? There are two types of credit unions – retail and wholesale. Retail credit unions, like the United States Senate FCU serve people while wholesale credit unions like the corporate credit unions provide liquidity, investment and payment services for other credit unions. They are
