Southwest Corporate Federal Credit Union in Texas is under the National Credit Union Administration's microscope.
The regulator launched an inquiry of the $5.3 billion-asset corporate after an examination early last month, according to an agency official. The inquiry is the first conducted by the agency's new Office of Corporate Credit Unions.
"We found some things that led us to look further," said NCUA Executive Director Karl Hoyle. "There are a number of things under consideration."
The agency is trying to determine if the corporate's purchase of the Texas Credit Union League's check processing facility earlier this year was an "arm's length" deal, according to Mr. Hoyle. Southwest Corporate and the Texas Credit Union League share board members.
By selling the subsidiary for $11 million, the league was able to offset a writedown on property it owned and beef up its underfunded pension fund.
The league didn't look for other buyers, nor did it get an appraisal of the subsidiary to determine its true value, league officials' have said.
Earlier this year the NCUA proposed banning shared management between corporates and leagues. The propriety of the Texas deal was questioned in several comment letters.
Mr. Hoyle wouldn't comment on what else the regulator was scrutinizing. He added that corporate officials were cooperating.
Corporate officials did not return phone calls.
