Credit Union Rescues
Most of the government's intervention in the credit union sector have been related to corporate credit unions. Corporate credit unions do not directly serve customers, but rather play a supporting role for their membership of retail credit unions. In addition to the federal government's enhanced role in bank activity, the financial crisis forced the state to become involved in credit union action as well. In order to begin stabilizing the credit unions, the government created a loan program from the National Credit Union Administration's Central Liquidity Facility designed to subsidize funding to help credit unions modify mortgages and to facilitate lending by financing corporate credit unions. Next, the NCUA's National Credit Union Share Insurance Fund provided $1 billion to the U.S. Central Federal Credit Union in order to cover losses on mortgage and asset-backed securities. Then, in March of 2009, the NCUA took over two federal credit unions, US Central and Western Corporate in order to stabilize the corporate credit union system and resolve balance sheet issues.