LOS ANGELES In a rare supervisory order, the California Department of Financial Institutions has directed Lithuanian CU which has seen more than half of its $12 million in assets drained to remove and replace its current CEO, who, the DFI said, “is not considered acceptable by the [DFI] Commissioner.”
The strict supervisory order puts the $5.5-million credit union on a short leash, barring it from making major payments without the DFI’s consent, requiring it to file an updated audit report and increase its allowance for loan losses, and requesting an legal opinion from CUNA Mutual Group whether the fidelity bond covering the CEO will be continued or cancelled.
The one-time $12.5-million credit union reported losses for 2010 and 2011, but earned a net of $13,852 in 2012 and $3,862 for the first quarter of 2013, while reporting net worth of 8%.
