Credit Unions Bailed Out

From:  The Wall Street Journal

Credit Unions Bailed Out


U.S. Backs $30 Billion in Bonds to Stabilize Key Institutions; Subprime Legacy
http://online.wsj.com/article/SB10001424052748703499604575512254063682236.html?mod=WSJ_hpp_LEFTWhatsNewsCollection
 
 
Two years after the peak of the financial crisis, the federal government swooped in to stabilize a crucial part of the credit-union sector battered by losses on subprime mortgages.


Regulators announced Friday a rescue and revamping of the nation's wholesale credit union system, underpinned by a federal guarantee valued at $30 billion or more. Wholesale credit unions don't deal with the general public but provide essential back-office services to thousands of other credit unions across the U.S. The majority of retail credit unions are sound, but they will have to shoulder the losses through special assessments over the next decade. . . . .