Several options are on the table about what to do after the government seized the nation’s largest U.S. corporate credit union, which had taken on an unacceptably high set of risky investments.
Chief executive James Nance is considering setting up a “bad bank” to handle some of the union’s mortgage assets, according to Reuters. Nance was formerly the chief administrative officer at Icap Capital Markets Llc in New Jersey.
Nance will also look at how to securitize the company’s assets in ways which would let them be held for some extended periods, the report stated. He is also looking to explore the sale of some assets to non-credit unions.