California CU Is First Failure Of 2011

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SAN FRANCISCO – NCUA and state regulators today closed Oakland Municipal CU and assigned the remnants of the one-time $130 million credit union to Western FCU, the $1.5 billion Manhattan Beach-based credit union.
Oakland Municipal, the first credit union failure of the year, lost $4.9 million for 2009 and another $900,000 for 2010, and was inadequately capitalized.

The credit union was chartered in 1936 by Oakland city employees and expanded to serve all residents of the city and of San Leandro. 

SAN FRANCISCO – NCUA and state regulators this evening closed Oakland Municipal CU and assigned the remnants of the one-time $130 million credit union to Western FCU, the $1.5 billion Manhattan Beach-based credit union.

Oakland Municipal, the first credit union failure of the year, lost $4.9 million for 2009 and another $900,000 for 2010, and was inadequately capitalized.

The credit union was chartered in 1936 by Oakland city employees and expanded to serve all residents of the city and of San Leandro.

There were also four banks seized this evening. 

 

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