The troubled Silver State Schools Credit Union of Las Vegas, the state's largest, has received a financial bailout-said to be $22 million-from American Share Insurance, the Ohio private insurer.
In a statement posted on its Web site, David Rhamy, president/CEO, said the $883 million CU is "pleased to announce that we have successfully completed this transaction" and "this capital infusion bolsters our general reserves now and positions us to continue to help our members as we move forward.
The statement acknowledged the credit union's loan loss problems by mentioning that in December "I wrote to you of Silver State School's plan to immediately increase our reserves through a cooperative effort with our deposit insurance provider."
No mention was made of the details of the transaction but the Las Vegas Review Journal said a "knowledgeable source" has provided the $22 million amount. Also involved in the negotiations has been the Nevada Financial Institutions Division and its Commissioner George Burns.
Officials of ASI, of Dublin, Ohio or Burns were not immediately available for comment but the Review Journal article also noted that Silver State has yet to post year-end financial statements on the ASI Web site, a practice of ASI-insured CUs.