CDCU Rescue Bid Fails

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HARRISBURG, Pa. - (02/06/06) -- In another failure of a communitydevelopment credit union, NCUA said Friday it closed down andliquidated Greater Harrisburg Community CU, after efforts to find amerger-mate were unsuccessful. The tiny CDCU was chartered in 2001to serve residents of Dauphin County, surrounding the state capita,most of them in low income communities. NCUA said the young creditunion, with just 1,600 members and $1.6 million in assets, wasinsolvent and had no prospects of returning to financial viability.The credit union had assistance from several non-member depositors,including PNC Bank, which contributed a $100,000 deposit. GreaterHarrisburg Community CU joins the list of other prominent CDCUfailures over the past two years, including Hacienda Community CU,Randolph County FCU, KO-AM FCU, Nor-Car FCU, Oasis Community FCUand D. Edward Wells FCU.

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