U.S. Central Corporate Federal Credit Union tapped the FederalReserve's emergency loan fund at least four times from July throughSeptember 2008, according to data released by the FederalReserve.
|The data, which was released by the Fed as required by thefinancial overhaul bill, showed U.S. Central borrowed $10.5 billionfrom the Federal Reserve's Term Auction Facility, a special fundcreated to pump liquidity into financial institutions during theheight of the financial crisis.
|The troubled corporate credit union, which was eventuallyconserved by the NCUA, borrowed the funds in amounts ranging from$500 million to $5 billion.
|The loans were eventually replaced by a loan from the CentralLiquidity Facility.
|U.S. Central borrowed $500 million on July 17, $5 billion onAug. 14, $2 billion on Aug. 28 and $2.5 billion on Sept. 11. Theinterest rates for the loans, most of which were for 28 days,ranged from 2.3% to 2.5%.
|The loans were eventually replaced by a loan from the NCUA'sSystem Investment Program. Under that program, natural personcredit unions borrowed money from the Central Liquidity Facilitywhich was invested into the corporate credit union system.
|The Fed made loans through 21 different programs and at one timehad $1.5 trillion in outstanding credit on its books.
|To see the data, go to: http://www.federalreserve.gov/newsevents/files/taf.xls
Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.
Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
- Exclusive discounts on ALM and CU Times events.
- Access to other award-winning ALM websites including Law.com and GlobeSt.com.
Already have an account? Sign In
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
