The failure last year of Nevada's $98 million Ensign Federal Credit Union and a defaulted $1.5 million loan apparently made to non-members and at the center of a lawsuit filed last month is firing up bankers' tax exemption talk.
The latest barrage comes from one of the American Bankers Association's chief front men, Keith Leggett, vice president/senior economist, who in his "Credit Union Watch" blog complains about Ensign making real estate loans to a group of three non-member borrowers via a broker. Leggett, a frequent CU critic, based his claims on media reports about the Sept. 30 lawsuit filed in a Las Vegas federal court in which NCUA is plaintiff to recover loan payment guarantees.
The NCUA made no comment on the Leggett blast or on the suit filed by a Las Vegas firm, Hutchison & Steffen. "Whenever a credit union failure occurs, we evaluate all outstanding obligations and make a determination as to whether to take legal action," the agency said.
Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.
Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
- Exclusive discounts on ALM and CU Times events.
- Access to other award-winning ALM websites including Law.com and GlobeSt.com.
Already have an account? Sign In
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
