Conserved California credit union continues five-year string of losses.
Many unanswered questions continued to swirl last week over the causes, fate and future course of the conserved $318 million Telesis Community Credit Union.
The $1.3 billion Premier America Credit Union has contracted with the NCUA to manage the assets of the seized $318 million Telesis Community Credit Union. Both credit unions are based in Chatsworth, Calif.
The NCUA announced Monday evening that the $1.3 billion Premier America CU would take over management of $318 million Telesis Community CU.
After years on a regulatory watch list, NCUA and the California Department of Financial Institutions finally pulled the plug last week on the $318 million Telesis Community Credit Union, placing the Los Angeles-based credit union into conservatorship. The NCUA was appointed conservator, ending a troubled saga.
Since at least 2010, Telesis Community Credit Union’s member business loan program has been in a downward spiral.
Legislation that would raise the cap on credit unions' business loans to members is poised for a mid-April showdown in the Senate.
The NCUA has clarified that Autoland Inc., the auto buying CUSO co-owned by Telesis Community Credit Union, will continue to operate.
Business Partners LLC, the CUSO founded by Telesis Community Credit Union in the early 1990s, will continue originating and servicing loans, the NCUA said Monday.
California credit union placed into conservatorship on Friday; questions remain whether overreach contributed.