The National Credit Union Administration has placed the only credit union in American Samoa under conservatorship.
American Samoa Government Employees Federalk Credit Union was put into conservatorship on Oct. 26, because of anticipated losses in its losses in its loan port-folio.
The regulatory agency will manage the institution, which is based in Pago Pago, for six to 12 months, said Robert Blatner, director of special actions for the agency's western region.
The credit union has been considered a problem case for more than a year, Mr. Blatner said, because of poor underwriting, high delinquency and chargeoff rates, and long-term real estate loans.
