Regulators seize two credit unions
U.S. regulators on Friday seized the two largest wholesale credit unions in the U.S. to stabilize a system used by 90 million customers.
Regulators seized control of the two credit unions, whose total assets were $57 billion, after finding that their losses on mortgage-related securities were larger than previously thought, The Wall Street Journal reported.
U.S. Central Corporate Federal Credit Union, in Lenexa, Kan., and Western Corporate Federal Credit Union in San Dimas, Calif., were put into conservatorship, the National Credit Union Administration said in a statement Friday.
Corporate credit unions are chartered to provide products and services to the credit union system. They don’t directly serve customers.
“Service continues uninterrupted at both U.S. Central Corporate Federal Credit Union and WesCorp.,” the administration said in its statement.
Casino once owned by Sinatra goes up for sale
A Lake Tahoe casino once owned by Frank Sinatra is set to go up for a foreclosure sale April 8.
Because the Cal Neva Resort, Spa and Casino straddles the California-Nevada line, separate auctions that day in Reno and Roseville, Calif., are listed on the trustees notice.
The first is scheduled for 10 a.m. in Roseville; the second is set for 11 a.m. in Reno.
The auction in either state could affect the other state’s sale if a party bids the full or partial amount of the property.
Licenses revoked for mortgage brokers
The state Mortgage Lending Division said Thursday it revoked the licenses of four mortgage brokers and fined them $18,050 for violations ranging from unlicensed activity to improper use of consumer credit information.
Mortgage Loan Specialists was fined $10,000; Yasmit Requena, $5,000; Stanley Watkins, $2,500; and Dulce Salinas, $550.
“We are committed to taking strong action against licensees who violate our laws, Mortgage Lending Commissioner Joseph Waltuch said in a statement on Thursday.
Treasury prices sag to close volatile week
Treasurys fell again Friday after surging on the Federal Reserve’s midweek announcement that it would buy $300 billion in government debt.
The 10-year Treasury note fell 0.31 points to 100.97. Its yield rose to 2.62 percent from 2.59 percent late Thursday. That’s still well below Tuesday’s yield of 3.01 percent.
The 30-year bond fell 0.19 points to 96.97, and its yield rose to 3.65 percent from 3.61 percent, BGCantor market data show.