Citing a critical worsening in the finances of the provider of services to countless retail credit unions, the National Credit Union Administration (NCUA) has taken control of two corporate credit unions, with $57 billion in combined assets. In addition, the US regulators also seized three more small banks on Friday, bringing the total to 20 thus far in 2009.

While one of the seized credit unions is the Lenexa, Kansas-based US Central Federal Credit Union, with nearly $34 billion in assets; the other is the San Dimas, California-based Western Corporate Federal Credit Union with $23 billion in assets.

According to the agency, both the credit unions have been put into conservatorship because they failed the so-called "stress tests" that revealed an "unacceptably high concentration of risk" from mortgage-backed securities.

In a telephone interview, NCUA spokesman John McKechnie said: "Most of the bad assets that we've seen in the corporate world reside at these two institutions. We will be able to resolve them in a more efficient way."

In addition, three small banks - in Kansas, Colorado and Georgia - too were seized by regulators, due to a heave in foreclosures amid recession. According to e-mailed statements from the Federal Deposit Insurance Corp (FDIC) - which has been named receiver - the banks had a total of $1.1 billion in assets and $853 million in deposits.