Government stabilizes wholesale credit unions by backing $30 billion in bonds

09/27/2010 | Wall Street Journal, The

The U.S. government has moved in to rescue the nation's wholesale credit union system by taking over three wholesale credit unions, managing $50 billion of troubled assets inherited from failed institutions and funding the effort with $30 billion to $35 billion in government-guaranteed bonds issued by the National Credit Union Administration and backed by the unstable mortgage-related assets. Although wholesale credit unions don't work with the general public, they provide critical back-office services to thousands of other credit unions nationwide.

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