Government seizes two large credit union clearing houses, as bailout costs keep rising


The battle that financial firms have to fight due to losses of the value of mortgage-backed securities is not over. The government had to takeover two large credit union wholesale operation because they had underestimated their losses on toxic paper.

According to The Wall Street Journal (subscription required), "U.S. Central Corporate Federal Credit Union in Lenexa, Kan., and Western Corporate Federal Credit Union in San Dimas, Calif., which have a total $57 billion in assets, were taken into conservatorship by federal regulators ..."