The Florida Credit Union League said it is supporting Eastern Financial Florida Credit Union in its efforts to come back into compliance after the $1.6 billion financial institution was found in violation of several unsound practices.
"I think they can bounce back. Eastern is working hard to come through the economic recession," said Andy Price, general counsel at the league. "We have talked to them. We support them. Are we in there giving advice, no."
The Florida Office of Financial Regulation issued a cease and desist order on March 19 against Eastern Financial giving the CU a series of deadlines to correct more than a dozen of what it described as "unsafe and unsound" practices. Price said Florida's OFR could have imposed harsher penalties but the regulator probably felt the CU had the wherewithal to clean up its act.
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"The state could have gone a lot further than they did. I don't know if they could have put them in conservatorship. You would have to ask [the OFR]," Price said. "They have been put under heightened supervision. I think the state is giving them a chance to turn things around."
Price said the CU is still a member of the league. Eastern Financial has yet to respond to calls from Credit Union Times for comment.
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