A week after placing $250 million St. Paul Croatian Federal Credit Union into conservatorship, the NCUA on Saturday announced it was liquidating the credit union.
The primary cause of the failure of Center Valley FCU was the embezzlement of millions of dollars by the former CEO to fund her family's restaurant and the purchase of luxury vehicles.
The management of Cal State 9 Credit Union made "poor strategic decisions" and lacked the experience to understand the risks of subprime lending and its HELOC program, while NCUA examiners failed to recognize the risks and take corrective action.
Even though the NCUA is closer to finalizing its plan to separate $50 billion worth of toxic assets from corporate balance
The management of Cal State 9 Credit Union made "poor strategic decisions," and lacked the experience to understand the risks of subprime lending and its HELOC program while NCUA examiners failed to recognize the risks and take corrective action.
At a time when the NCUA and the trade groups are pushing Congress to raise the cap on member business loans, the agency's inspector general faulted its examiners for insufficient oversight.
Matthew Bilouris, a program officer at the NCUA's Office of Examination and Insurance, has been named special assistant to NCUA Executive Director David Marquis.
ARLINGTON, Va. -- In the prelude to the most recent crisis facing corporate credit unions, everybody messed up some.