4/30/2010 CU Times - By Heather Anderson
D. Henry Blevins, managing director at Crews & Associates, said credit unions should be concerned unexpected gains from securitized corporate assets would not be returned to their balance sheets.
But, he added, it’s a moot point.
Blevins called underperforming corporate investments “toxic waste”, and said CEOs expecting gains are “experiencing corporate Kool-aid withdrawal.”
The Little Rock, Ark.-based investment banker said his 50-plus credit union clients worry aloud that rising costs of corporate stabilization will prompt “the end of the current credit union era as we know it.”
“The NCUA is between a rock and a hard place,” he said, because half of all federally insured credit unions reported negative net income as of 2009 year-end. The burden of corporate losses is already too great for credit unions to carry, he said.
“The not-for-profit credit union charter is remarkable, but many credit unions can no longer afford the costs associated with being not-for-profit,” he said. “The NCUA was present at both WesCorp and U.S. Central. Now NCUA must engage in some creative accounting and a ‘bad asset’ bank to hide the unintended consequences of their failure to adequately monitor and examine the corporates.”