Conservator takes over Cal State 9 credit union ('insolvent')

[Newsjock]

Source: San Francisco Chronicle

The weight of defaults on real estate loans has forced the Bay Area-based Cal State 9 Credit Union into federal conservatorship.

The state Department of Financial Institutions announced late Friday that it was putting the National Credit Union Administration - the federal agency that regulates and insures credit agencies - in charge of Cal State 9 operations.

... The Cal State 9 Credit Union, which has been in operation for nearly 60 years, has more than 29,000 members and nearly $388 million in assets, said Carol Chesbrough, California's interim commissioner of financial institutions.

"The credit union, however, had impaired capital and had become insolvent," Chesbrough said.

The credit union reported $54.5 million in loan and lease losses in its September quarterly report on file with the state; in the previous quarter the reported losses amounted to $17 million.

Read more: http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2007/11/04/BA7FT67CK.DTL

[fasttense]

1. It is like we are witnessing the bank failures of 1931,

only in very slow motion. One bank after another collapses but depositors aren't worried because their money is insured by the government. Thank God the ignorant government of ours didn't deregulated deposit insurance up to $100,000, otherwise real bank runs would be occurring right now.

[formercia]

3. Insured deposits

mean that the taxpayer will end up paying for the bad financial judgements of others.

Print more money, accrue more debt. Soon the greenback won't be worth the paper its printed on.

[Gormy Cuss]

4. More like taxpayers paying for sleazy , irresponsible, and fraudulent business practices.

It's easy to blame only those who are defaulting for the mortgage crisis but there is and was much market manipulation and flat out fraud in the mortgage industry at every level. Before we start bailing out consumers with tax money the government needs to look hard at regulation to create better consumer protection.

[formercia]

8. That's what deregulation is all about.

The Robber Barons and Ivy League Mafia have made a killing on the backs of the taxpayers who will end up paying for this mess for another couple of generations. They whine and say the S&L scandal of 20 years ago was due to a few bad apples, but it's the same gangs, just a new generation playing the same scam.

The only way to keep these crooks in line is to lock them up for a long time.

[whistle]

2. Exactly that, get Congress to act on The Homeowners and Bank Protection Act of 2007

...as drafted and introduced on September 5, 2007

Implement the Homeowners and Bank Protection Act of 2007

Whereas, the onrushing financial crisis engulfing home mortgages, debt instruments of all types, and the banking system of the United States threatens to set off an economic depression worse than the 1930s; and

Whereas, millions of American citizens are threatened with foreclosure and loss of their homes over the upcoming months, according to studies released by Realty Trac and Moodys Economy.com; and

Whereas, this financial crisis is now threatening the integrity of both state and federally chartered banks, as typified by the run on deposits of Countrywide Financial in California during the month of August; and such a banking collapse would wipe out the life savings of American citizens, and drastically undermine the economic stability of our states and cities; and

Whereas, in a similar financial crisis in the 1930s, President Franklin D. Roosevelt intervened to protect banks and homeowners; for example in April, 1933 he introduced legislation as a declaration of national policy that the broad interests of the Nation require that special safeguards should be thrown around home ownership as a guarantee of social and economic stability, and therefore,

Be it Resolved, that the State of /City of/ hereby endorses the Homeowners and Bank Protection Act of 2007. This crisis is such that it requires emergency action that only the United States Congress has the capability to enact. Congress must move quickly to keep people in their homes and avert social chaos. This act includes the following provisions:

1. Congress must establish a Federal agency to place the Federal and state chartered banks under protection, freezing all existing home mortgages for a period of how ever many months or years are required to adjust the values to fair prices, and restructure existing mortgages at appropriate interest rates. Further, this action would also write off all of the speculative debt obligations of mortgage-backed securities, derivatives and other forms of Ponzi Schemes that have brought the banking system to the point of bankruptcy.

2. During the transitional period, all foreclosures shall be frozen, allowing American families to retain their homes. Monthly payments, the equivalent of rental payments, shall be made to designated banks, which can use the funds as collateral for normal lending practices, thus recapitalizing the banking systems. These affordable monthly payments will be factored into new mortgages, reflecting the deflating of the housing bubble, and the establishment of appropriate property valuations, and reduced fixed mortgage interest rates. This shakeout will take several years to achieve. In the interim period no homeowner shall be evicted from his or her property, and the Federal and state chartered banks shall be protected, so they can resume their traditional functions, serving local communities, and facilitating credit for investment in productive industries, agriculture, infrastructure, etc.

3. State governors shall assume the administrative responsibilities for implementing the program, including the rental assessments to designated banks, with the Federal government providing the necessary credits and guarantees to assure the successful transition. And therefore,

Be it Further Resolved, that a copy of this resolution shall be forwarded to members of Congress from the state of and also be delivered to the President of the United States for immediate implementation.




List is current as of: 11/01/07 22:10 EDT

Signers of the Petition

Congressman Mervyn Dymally *; currently State Assemblyman; Los Angeles, Calif.
Dr. Joycelyn Elders, former Surgeon General of the United States; Little Rock, Ark.
Congressman Andy Jacobs *; Indianapolis, Ind.
Rosa Rosales, National President, League of Latin American Citizens; San. Antonio, Tex.
Current and Former State Elected Officials
Listed alphabetically by state, and alphabetically by name within each state:

Northeast/Mid-Atlantic:

Councilman Charles Blango; New Haven, Conn.
Sen. Eric Coleman; Hartford, Conn.
Robert Lee, New Haven Board of Aldermen; New Haven, Conn.
Rep. Douglas McCrory; Hartford, Conn.
Rep. Felipe Reinoso; Bridgeport, Conn.
rJo Winch, Hartford City Council; Hartford, Conn.
Erford Fowler, City Council; Newburyport, Mass.
Councilman Jorge Gonzalez; City Council, Lawrence, Mass.
Councilwoman Grisel Silva; City Council, Lawrence, Mass.
Rep. Benjamin Swan; Springfield, Mass.
Del. Melvin Stukes; Baltimore, Md.
Mayor James Walls; District Heights, Md.
Councilman Radhames Capellan; Prospect Park, N.J.
Richard Forbes; Committeeman, Pohatcong Township; Pohatcong, N.J.
Assemblyman Gordon Johnson; Englewood, N.J.
Harry Apolito; County Legislator, 15th District, Niagara Falls, N.Y.
Demone Smith; Buffalo City Council, Buffalo, N.Y.
Rep. Harold James; Philadelphia, Pa.
Rep. Thaddaeus Kirkland; Chester, Pa.
Rep. Ron Waters; Philadelphia, Pa.
Councilman Miguel Luna; Providence, RI
Councilman Nicholas Narducci; Providence, RI
Midwest:

Rep. Annazette Collins; Chicago, Ill.
Councilwoman Joanne Sanders; Indianapolis, Ind.
Sen. Samuel Smith; E. Chicago, Ind.
Rep. Oletha Faust-Goudeau; Wichita, Kan.
David Burcar, Democratic Precinct Delegate; Clinton Township, Mich.
Rep. Lee Gonzales; Flint Township, Mich.
Rep. LaMar Lemmons II; Detroit, Mich.
Rep. LaMar Lemmons III*; Detroit, Mich.
Everett Seay, City Council; Pontiac, Mich.
Bob Van Hee*, President of the City Council; Redwood Falls, Mn.
Rep. Esther Haywood; St. Louis, Mo.
Rep. Rodney Hubbard; St. Louis, Mo.
Rep. Jamilah Nasheed; St. Louis, Mo.
Rep. Terry Riley,* City Council; Kansas City, Mo.
Rep. Charles Quincy Troupe,* Board of Aldermen; St. Louis, Mo.
Rep. Juanita Walton; St. Louis, Mo.
Sen. George W. Burrows*; Adams, Neb.
Sen. John DeCamp*; Lincoln, Neb.
Sen. Don Eret*; Dorchester, Neb.
Rep. Catherine Barrett*; Cincinnati, Ohio
Kevin Conwell, City Council; Cleveland, Ohio
Rep. Annie Keys*; Cleveland, Ohio
James Shealey, City Council; Akron, Ohio
Robert White, City Council; Cleveland, Ohio
Rep. Jim Bradford; Pine Ridge, S.D.
Tribal Chairman Joseph Brings Plenty, Cheyenne River Sioux Tribe, Eagle Butte, S.D.
Tribal Chairman Robert Cournoyer, Yankton Sioux Tribe; Marty, S.D.
Rep. Clayton Halverson; Veblen, S.D.
Sen. Frank Kloucek; Scotland, S.D.
Rep. Gerald F. Lange*; Madison, S.D.
Rep. Larry Lucas; Mission, S.D.
Sen. Ryan Maher; Isabel, S.D.
Rep. Eldon Nygaard; Vermillion, S.D.
Sen. Dan Sutton, Flandreau, S.D.
Sen. Theresa B. Two Bulls; Pine Ridge, S.D.
Rep. Tom Van Norman; Eagle Butte, S.D.
Rep. Christine Sinicki; Milwaukee, Wisc.
South:

Rep. Yusuf Abdus-Salaam; Selma, Ala.
Rep. Ronald Grantland; Hartselle, Ala.
Rep. Thomas Jackson; Thomasville, Ala.
Rep. Thad McClammy; Montgomery, Ala.
Rep. Demetrius Newton; Speaker Pro-Tem; Birmingham, Ala.
Rep. John Rogers; Birmingham, Ala.
Rep. James Thomas; Selma, Ala.
Rep. Nancy Blount; Marianna, Ar.
Rep. Otis Davis; Earle, Ar.
Rep. Janice Judy *; Ft. Smith, Ar.
Chairwoman Sylvia Rutledge, Levy County Democratic Party Committee; Levy County, Fla.
Rep. Priscilla Taylor; West Palm Beach, Fla.
Rep. Bob Bryant; Garden City, Ga.
Sen. Gloria Butler; Stone Mountain, Ga.
Dock Davis, Democratic County Chair, Heard County; Franklin, Ga.
Rep. Hardie Davis; Gracewood, Ga
Rep. Billy Mitchell; Stone Mountain, Ga.
Rep. Howard Mosby; Atlanta, Ga.
Rep. Georganna Sinkfield; Atlanta, Ga.
Monroe (Bo) Todd, Democratic Chairman, Charlton County; Folkston, Ga.
Rep. Earnest Williams; Stone Mountain, Ga.
Dan Johnson, City Council; Louisville, Ky.
Sen. Joey Pendleton; Hopkinsville, Ky.
Diane Wood, President, Kentucky State Democratic Women’s Clubs; Hopkinsville, Ky.
Mayor Jack Hammons; Winnsboro, La.
Councilman Lionell Hicks, Slidell City; Slidell, La.
Sen. Robert Kostelka; Monroe, La.
Mayor Reggie Skains; Downsville, La.
Rep. Earle Banks; Jackson, Miss.
Rep. Credell Calhoun; Jackson, Miss.
Jackie Washington, Business owner and NAACP activist; Biloxi, Miss.
James Mitchell, City Council; Charlotte, N.C.
Rep. Robert Brown; Charleston, S.C.
Rep. Joe Towns; Memphis, Tenn.
Supervisor James E. Clem; County Board, Loudoun County, Va.
E. Martin Jewell, City Council member; Richmond, Va.
West:

Quincy O'Neal, Vice-Chairman California State Democratic Party African-American Caucus; Los Angeles, Ca.
Assemblyman Harvey Munsford, 6th District; Clark County, Nev.
Sen. Joe Neal,* Las Vegas, Nev.
Sen. Carlos Cisneros; Questa, N.M.
John Wiley Price, Dallas County Commission; Dallas, Tex.


Labor Signers

Scott Henning, Grievance Chairman and Trustee, United Steelworkers Local 8378; McMinnville, Ore.
Bruce Hawley, President, Western Michigan Building Trades; Business Manager, Ironworkers Local 340; Grand Rapids, Mich.
Gary Barnett, Chairman, UAW CAP Council Franklin County; Columbus, Ohio
Mark Sweazy, President, UAW Local 969; Columbus, Ohio
Kathy Jensen, Financial Secretary, UAW CAP Council Franklin County; Columbus, Ohio
Frank Hettinger, Business Agent, Elevator Constructors Local 20; Louisville, Ky.
Bob Gossman, Chairman, UAW Retirees Local 969, Columbus, Ohio
John Jeffries, President, IAM Lodge 830; Louisville, Ky.
Windell Gregory, Secretary-Treasurer, District Lodge 19 IAMAW; Paducah, Ky.
Gordon Brown, Trustee, UAW CAP Council Franklin County; Columbus, Ohio
Bob Breckinridge, Trustee UAW CAP Council Franklin County; Columbus, Ohio
Lawrence Ryan, President, United Steelworkers Local 370; Ft. Smith, Ark.
Charles Morton, Executive Director, Dayton Building and Construction Council; Dayton, Ohio
Martin Sheets, Vice President, Local 1395 IBEW; Indianapolis, Ind.
Rick Nye, President, UAW Local 2269; Columbus, Ohio
Eugene Morey, President, UAW Local 849; Ypsilanti, Mich.
Gary Perry, Chair, Franklin County Union Label Committee; Columbus, Ohio
Michael Balls, Vice Chair, Saginaw County UAW CAP Committee; Trustee UAW Local 699; Board of Directors, Wanigas Credit Union; Saginaw, Mich.
Van Collins, Uniserve Director, Michigan Educators Assn; Saginaw, Mich.
David Campbell, Secretary-Treasurer, Area Local 480-481 APWU; Ferndale, Mich.
Paul Shemanski, International Representative, IAM Michigan; Comstock Park, Mich.
Frank Barkley, President, 12th District VA Council AFGE; Business Agent, Local 1061, AFGE; Van Nuys, Calif.
James Berger, Business Manager, IBEW Local 309; Collinsville, Ill.
Ismael Martinez, Recording Secretary, USWA Local 1482; Old Bridge, N.J.
Adrian King, President, UAW Local 35; Hamtramck, Mich.
Steve Green, President, USWA Local 1482; Old Bridge, N.J.
Sue Daniel, Treasurer, Smith County Central Labor Council, former Vice President, Texas AFL-CIO; Frankston, Tex.
Lawrence Oberding, Business Agent, Ironworkers Local 44; Cincinnati, Ohio
Maurice Pulley, Executive Board, Local 1654 AFSCME; Milwaukee, Wisc.
Bert Atkins, Chairman, Legislative Committee, IAM Local 837, St. Louis, Mo.
Richard Downs, Vice President, Heat and Frost Insulators Local 18; Indianapolis, Ind.
Shane Shook, President, AFSCME Local 3450; Des Moines, Iowa
William Londrigan, State President, Kentucky AFL-CIO; Frankfort, Ky.
Mark Thomas, Business Agent, Ironworkers Local 3; Pittsburgh, Pa.
Douglas Kubic, Financial Secretary-Treasurer and Business Agent, ILA Local 815; Milwaukee, Wisc.
John Jeffries, President, Local 830 IAM, Louisville, Ky.
Jonathon Dooley, Vice President, Amalgamated Transit Union Local 1447; Louisville, Ky.
Rhonda Rivers, Recording Secretary, ATU Local 1447; Louisville, Ky.
Wanda Mitchell-Smith, Political Action Representative, AFSCME Council 62; Louisville, Ky.
Paul Jacobs, Business Representative, Teamsters Local 379; Boston, Mass.
Richard Womack, National Representative, AFL-CIO; Philadelphia, Pa.
Kenneth Koch, President, IAM Lodge 681; Vice President Kentucky AFL-CIO; Louisville, Ky.
Larry Johnson, President, IAM Lodge 1720; Mayfield, Ky.
Ron Basham, Chief Steward, IAM Lodge 830; Louisville, Ky.
Mary Garr, President, CWA Local 3310; Louisville, Ky.
Jim Neubauer, Business Manager and Financial Secretary, IBEW Local 1377; Cleveland, Ohio
S.L. Stephens, President, UAW Local 882; Hapeville, Ga.
Jeff Monroe, UAW International Representative, General Dynamics Coordinator; Detroit, Mich.
Donald Lawson, Labor lawyer and consultant; San Jose, Calif.
Chris Holland, Apprentice Program Instructor and Former Executive Board, Ironworkers Local 416; Norwalk, Calif.
Kenneth Pifer, Business Representative, Local 312; Painters and Glaziers; Kalamazoo, Mich.
Joe Joseph, Former President, UAW Local 1970; Dearborn, Mich.
Ron Kohring, Business Rep., IBEW Local 1455; St. Louis, Mo.
Billy Martin, President, CWA Local 4108; Saginaw, Mich.
Robert E. Gray, Steward, National Assoc. of Letter Carriers, Branch 990; Rochester, New Hamp.
William Alder, Chairman IAM Lodge 212, Executive Board District 19 IAM; Cumberland, Md.
John Smirk, Business Mgr. Painters and Glaziers Union local 105; Las Vegas, Nv.
Andy Kristich, UAW activist; Buffalo, NY
Rod Joggerst, Business Rep. Teamsters Local 618; St. Louis, Mo.
Dennis Stegman, Business Mgr. Glaziers Local 513; St. Louis, Mo.
Robert Bergsing, President and Business Development Rep., Sheet Metal Workers Union Local 103; Helena, MT
David H. Weiner, President, CWA Local 1081; Newark, NJ
Tito Boneta, President, UAW local 1005; Cleveland, Ohio
William Kelly, Business Mgr., Ironworkers Local 372; Cincinnati, Ohio
Rick Tincher, Chairman UAW CAP Committee Dayton area; Springboro, Ohio

[Neshanic]

9. Spectacularly idiotic idea.

On so many levels such a bizarre plan.

Implementation. Who was speculating and who was not? Thousands hired to pour over mortgages to see who bought two or three on speculation, and they want relief too? How do you make that distinction.

No Poppy's Resolution Trust Pinata this time. Bad decisions equal bad results. No help this time for any banks under any circumstances this time for the 1998-1992 redux.

They learn how to game it, and sorry not this time. We made alot of people rich for pennies on the dollar then. Not this time.

Bad bank, bad mortgage company, bad business, tough luck.

[R_M]

5. A credit union is going under? WTF?

[pop goes the weasel]

7. that's what I wonder, too

Credit unions aren't supposed to play fast and loose with financing. Members show up with 10% down and get a solid mortgage with the opportunity to change terms every year or so. Either this is a credit union that was mismanaged, or the economy in California has collapsed spectacularly even aside from the real estate crisis and we just aren't hearing about it.

[CountAllVotes]

6. kick & recommend

:kick: