Browsing all posts in "NCUA".

The Future of Corporate Credit Unions

Scrapping a system used by thousands of credit unions does not make practical sense. It is akin to abolishing the Federal Reserve System because of a few problems among major banks. Regionalization—through consolidation or merger—is a better path.

Previewing the Illinois Credit Union League Convention

The Illinois Credit Union League’s annual convention begins Thursday at the Chicago Hilton and Towers. Given the turbulence in the financial sector, this year’s aptly named theme is Shake, Rattle and Roll. While there will be plenty of breakout sessions for management and board members, I expect the biggest topic of conversation this year will be follow along one of these three lines.

A Brief Explanation of the Credit Union System

Federal regulators took control over two corporate credit unions Friday night. U.S. Central Federal Credit Union and Western Corporate Credit Union are two of 28 corporate credit unions that provide wholesale financing for American credit unions. Here is a basic overview of the credit union industry and how it operates.

How Your Credit Union is Helping Fix the Credit Crisis

The Credit Union System Investment Program (CUSIP), allows creditworthy credit unions to borrow funds from the CLF and invest the proceeds in participating corporate credit unions (who are not allowed to borrow directly from CLF). For participating in the program, the credit union receives a 25 basis point spread.