Gist: The government is stepping into help wholesale credit union. Credit union is one part of banking industry that will not do anything stupid with your money. However, it seems to be wrong now. The federal regulator took over three institutions that are wholesale credit union last week. Those credit unions took people’s money to bad investments. Now the credit union industry will pay for the cost of resolving those wholesale credit unions. However, the fact that mortgage-backed securities and toxic assets are still out there and banking industries are still working their way through financial system. The good news is the worst of the problem loans now seems to start stabilized.
I would say "overtly risky" instead of "stupid". Risk (and stupidity) are subjective (with a tiny bit of objectivity thrown in the mix).
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