DENVER – State regulators have issued cease and desist orders against two ailing state chartered credit unions, Longs Peak CU and Saguache County CU.
In the case of Longs Peak CU, the Commissioner of Financial Institutions said the $27 million Loveland institution has recorded a loss for four of the last five years and ordered it to build net worth and submit monthly reports to the state regulator. The credit union reported a $698,108 loss for 2008, and a loss of $193,633 for the first quarter of 2009, which included a $152,835 charge for the corporate credit union bailout.
In the case of Sauguache County CU, a $24 million Crestone credit union, which saw its net worth fall below 7%, the regulator ordered to submit a capital restoration plan, sell OREO property and not make additional loans to members with credit scores of 650 or less, without adequate guarantors. The credit union reported a loss of $186,051 for 2008, and a loss of $302,334 for the first quarter, which included a $144,252 charge for the corporate credit union bailout.
