September 25, 2010 – 5:24 pm

Constitution Corporate Federal Credit Union, Wallingford, Conn., was one of three credit unions to be place into conservatorship by the National Credit Union Administration last night.

The seizures may cost as much as $50 billion, and brings a number of unions seized by the agency and wide and why did this year to 18. The National Credit Union Administration plans to issue $30 to $35 billion in government-guaranteed bonds to finance the seizures.

Bad bets on mortgage-backed securities have now killed five of the nation’s 27 wholesale credit unions since March 2009. The federal government, which now controls about 70% of the total assets at such credit unions, said the surviving institutions will be reined in so that they take fewer risks with their investments.

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