A week after placing $250 million St. Paul Croatian Federal Credit Union into conservatorship, the NCUA on May 1 announced it was liquidating the credit union after determining that it was insolvent and had "no prospects for restoring viable operations."

About 12 hours before announcing the closing, the agency also announced that Region III Director Alonzo Swann was being transferred to be special assistant to NCUA Executive Director David Marquis and Region II Associate Regional Director of Operations Herb Yolles would serve as acting Region III director, effective immediately. St. Paul Croatian FCU is located in Cleveland and Eastlake, Ohio, which is part of Region III.

NCUA Director of Public and Congressional Affairs John McKechnie said the agency is still assessing the extent of the credit union's financial problems and conducting a valuation of assets. He declined to say whether there are any suspicions about wrongdoing in the credit union's operations.