National Credit Union Administration

Federal regulators are seeking $629 million in damages from a Royal Bank of Scotland unit accused of selling riskier-than-advertised mortgage securities to Western Corporate Federal Credit Union, a San Dimas credit union that failed during the financial crisis. The National Credit Union Administration lawsuit was filed Monday in U.S. District Court in Los Angeles. It alleged that RBS Securities knew or should have known that the loans backing its bonds contained "systematic" misrepresentations about the borrowers' incomes, debt levels, equity in properties and intent to live in the homes that were mortgaged.

The failure of Telesis Community Credit Union in Chatsworth provides a behind-the-scenes glimpse into controversies over business lending and multimillion-dollar executive pay at some of the member-owned financial cooperatives. State financial regulators late Friday seized Telesis, a financially troubled institution that remains open under control of the National Credit Union Administration. The NCUA oversees a federal insurance program for credit union accounts up to $250,000.

The failure of Telesis Community Credit Union in Chatsworth provides a behind-the-scenes glimpse into controversies over business lending and multimillion-dollar executive pay at some of the member-owned financial cooperatives. State financial regulators late Friday seized Telesis, a financially troubled institution that remains open under control of the National Credit Union Administration. The NCUA oversees a federal insurance program for credit union accounts up to $250,000.

Federal regulators are seeking $629 million in damages from a Royal Bank of Scotland unit accused of selling riskier-than-advertised mortgage securities to Western Corporate Federal Credit Union, a San Dimas credit union that failed during the financial crisis. The National Credit Union Administration lawsuit was filed Monday in U.S. District Court in Los Angeles. It alleged that RBS Securities knew or should have known that the loans backing its bonds contained "systematic" misrepresentations about the borrowers' incomes, debt levels, equity in properties and intent to live in the homes that were mortgaged.

House Banking Committee Chairman Henry B. Gonzalez has asked the nation's top credit union regulator to answer allegations of favoritism involving contracts with the National Credit Union Administration. Gonzalez (D-Tex.) asked Roger W. Jepsen to explain why a campaign contributor to Jepsen's unsuccessful campaign for reelection to the Senate received a lucrative contract from the agency to collect troubled credit union loans.

A federal agency is accusing two former executives of a giant failed credit union in Los Angeles County of fraud for their roles in adding millions of dollars to retirement payouts for themselves and other top brass at the financial institution. A lawsuit by the regulators also alleges breach of fiduciary duty and negligence by the two executives and 14 other officers and directors of Western Corporate Federal Credit Union in San Dimas. WesCorp, as it was known, was seized by the government in March 2009 after incurring nearly $7 billion in losses, largely because of bad investments in mortgage-backed bonds.

Certified Federal Credit Union in the City of Commerce was seized by federal regulators Saturday because of losses suffered during the real estate and housing downturns, according to the National Credit Union Administration. Vons Employees Federal Credit Union, based in El Monte, immediately assumed the deposits and loans of Certified and took over its operations, said John J. McKechnie III, a spokesman for the national agency. Certified, which had only one office, served 8,500 members.

Federal banking regulators are trying a new push to encourage banks to make small-business loans. The government's strategy is to ease banks' concern about being slapped down for making loans that might be perceived by regulators as high risk. A joint statement issued Friday by the Federal Reserve, the Federal Deposit Insurance Corp. and other agencies emphasizes that "financial institutions that engage in prudent small-business lending after performing a comprehensive review of a borrower's financial condition will not be subject to supervisory criticism for small-business loans made on that basis."

The bailout of the nation's failed savings and loans will be a bonanza for lawyers, Federal Deposit Insurance Corp. Chairman L. William Seidman said Monday. Seidman said he expects to double the 40,000 lawsuits already under way against troubled thrifts and eventually to spend half a billion dollars for outside legal counsel. Speaking before the American Bankers Assn.'

How would you like to earn more money on your savings and pay less money for your car loan or boat loan? A credit union, because it is a nonprofit membership organization, can usually give you much better rates on your savings and loans. But, up to now, credit unions have been closed to outsiders. Only the employees or others who belong to a specific organization were eligible for memberships.

A federal agency is accusing two former executives of a giant failed credit union in Los Angeles County of fraud for their roles in adding millions of dollars to retirement payouts for themselves and other top brass at the financial institution. A lawsuit by the regulators also alleges breach of fiduciary duty and negligence by the two executives and 14 other officers and directors of Western Corporate Federal Credit Union in San Dimas. WesCorp, as it was known, was seized by the government in March 2009 after incurring nearly $7 billion in losses, largely because of bad investments in mortgage-backed bonds.

Certified Federal Credit Union in the City of Commerce was seized by federal regulators Saturday because of losses suffered during the real estate and housing downturns, according to the National Credit Union Administration. Vons Employees Federal Credit Union, based in El Monte, immediately assumed the deposits and loans of Certified and took over its operations, said John J. McKechnie III, a spokesman for the national agency. Certified, which had only one office, served 8,500 members.

Federal banking regulators are trying a new push to encourage banks to make small-business loans. The government's strategy is to ease banks' concern about being slapped down for making loans that might be perceived by regulators as high risk. A joint statement issued Friday by the Federal Reserve, the Federal Deposit Insurance Corp. and other agencies emphasizes that "financial institutions that engage in prudent small-business lending after performing a comprehensive review of a borrower's financial condition will not be subject to supervisory criticism for small-business loans made on that basis."

House Banking Committee Chairman Henry B. Gonzalez has asked the nation's top credit union regulator to answer allegations of favoritism involving contracts with the National Credit Union Administration. Gonzalez (D-Tex.) asked Roger W. Jepsen to explain why a campaign contributor to Jepsen's unsuccessful campaign for reelection to the Senate received a lucrative contract from the agency to collect troubled credit union loans.

The bailout of the nation's failed savings and loans will be a bonanza for lawyers, Federal Deposit Insurance Corp. Chairman L. William Seidman said Monday. Seidman said he expects to double the 40,000 lawsuits already under way against troubled thrifts and eventually to spend half a billion dollars for outside legal counsel. Speaking before the American Bankers Assn.'

How would you like to earn more money on your savings and pay less money for your car loan or boat loan? A credit union, because it is a nonprofit membership organization, can usually give you much better rates on your savings and loans. But, up to now, credit unions have been closed to outsiders. Only the employees or others who belong to a specific organization were eligible for memberships.

Payday loans, for years a fixture in poor, working-class neighborhoods, are increasingly being offered by local banks and employee credit unions — triggering concerns by consumer groups that more Americans will be trapped in high-interest loans that could take years to pay off. More than two dozen regional and community banks now offer versions of these loans, most starting their programs since 2007. The biggest increase, however, has come at credit unions. Nearly 400 now are in the market, attracted by a 2010 change in regulations that boosted the maximum interest rate on payday loans to 28% from 18%. Conventional payday loans from storefront operations provide workers a two-week advance of as much as $500 on their paychecks for a flat fee or an interest rate that doesn't sound too extreme on the surface.

Regulators have taken over the Telesis Community Credit Union in Chatsworth, saying in a statement that the state-chartered institution had deteriorated to the point where it could no longer operate independently. Telesis will remain open under the conservatorship of the National Credit Union Administration, which insures its accounts for up to $250,000. Administered by NCUA, the national credit union insurance fund is backed by the credit of the federal government. The California Department of Financial Institutions, which closed Telesis late Friday, said members would be able to conduct transactions such as depositing and withdrawing funds, paying existing loans and applying for new ones.