Subprime mortgage crisis and then expand the United States five credit unions being dragged into the water

United States-five largest Credit Union has announced a massive mortgage securities carrying losses, this means that the real tired Wednesday has spread to pay most attention to risk avoidance function in the financial field, this also indicates that in the subprime mortgage crisis swept through the commercial banks, securities, investment banks and bond insurers, and other agencies at the same time, there is almost no other financial institutions to immunization.

(http://finance.) According to federal regulatory documents show that the five published mortgage-related losses of the company are the United States Central Federal Credit Union, the Western corporate Federal Credit Union, the members of the joint enterprise Federal Credit Union, Southwest corporate Federal Credit Union and articles of Association of enterprises of the Federal Credit Union.

File display, at the end of may, the United States due to credit market turmoil that five Credit Union announced about 57 billion total carrying amount of the loss. The amount is sufficient to offset their net worth, add them after the total negative equity, total 29 billion, which means that in theory, their debt exceeded the market value of assets.

But five Credit Union said that their balance sheet than surface shows a lot of strong, because the existing accounting rules do not allow them to display a major capital sources — in formal credit Union serves under somebody's banner the transition of the investment fund companies.

According to the Credit Union, the federal supervisory authority – National Credit Union Department stated that, in the mortgage market stability, the related losses are likely to be filled, and agencies in good condition and capital adequacy. But some external observers are worried that the Credit Union underestimated its set foot in the mortgage market depth and severity.

United States Credit Union is a non-profit, cooperative financial institutions owned by its members and management, service, democratic control and management of the Credit Union, for its members to provide a security deposit and a reasonable interest rate to the borrower. According to statistics, as of the end of 1999, the entire US 84 a Credit Union, with more than $ 7750.