At one point, the high-flying commercial lending CUSO formedthrough Eastern Financial Florida Credit Union funded more than$200 million in business loans and served dozens of credit unionsnationwide.
That was 2007. Two years later, the Florida Office of FinancialRegulation issued a cease and desist order againstEastern Financial for unsound lending and operationalpractices and requested a review of all business loan workoutsperformed by its CUSO, CU Business Capital LLC.
The Miramar, Fla.-based credit union would eventually face its demise when the NCUA placed it in conservatorship inApril 2009, followed by a merger with Space Coast Credit Union.CUBC quietly shut down and a Maryland firm became itssuccessor. Meredith Gibson, a Space Coast spokeswoman, confirmedCUBC is no longer operating.
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