X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

Saying that the facts “’lay to rest any notions of chance and instead evince deliberate – indeed, malevolent – design,’’ the $3.1 billion Space Coast Credit Union on Tuesday sued Barclays and State Street Securities, accusing the firms of selling a collateralized debt obligation designed to fail, and caused the former Eastern Financial CU to lose millions of dollars.

Space Coast said a predecessor credit union, Eastern Financial bought $10 million of ‘AA’ rated notes issued by the Markov CDO at 94.2 cents on the dollar, and that the entire investment was lost. Eastern Financial CU later collapsed, the largest natural person credit failure to date. Space Coast CU, based in Melbourne, Fla., acquired Eastern Financial’s assets when it took over the operations of the failed credit union.

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?

Credit Union Times

Join Credit Union Times

Don’t miss crucial strategic and tactical information necessary to run your institution and better serve your members. Join Credit Union Times now!

  • Free unlimited access to Credit Union Times' trusted and independent team of experts for extensive industry news, conference coverage, people features, statistical analysis, and regulation and technology updates.
  • Exclusive discounts on ALM and Credit Union Times events.
  • Access to other award-winning ALM websites including TreasuryandRisk.com and Law.com.

Already have an account? Sign In Now
Join Credit Union Times

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.