DENVER - (08/11/04) -- Founders of the Denver CommunityDevelopment CU are asking a federal bankruptcy here court to unwindthe merger and liquidation of the 10-year-old CDCU, almost twomonths after state regulators approved the merger of the failedinstitution into Denver Community FCU. Thomas Foster, who helpedcharter the credit union and was one of the dissenting directors inthe merger vote, has filed a petition with the U.S. BankruptcyCourt for an involuntary Chapter 11 to reorganize the credit union,which was taken under conservatorship by the state Feb. 9, thenmerged on June 25. But state regulators assert that federallyinsured financial institutions are exempt from federal bankruptcylaws and have asked the court to dismiss the unusual petition."This is an effort to unravel the merger, to get the credit unionback, But we feel it's too late. The merger is done," David Paul,commissioner of the Division of Financial Services, told The CreditUnion Journal. Net capital in the tiny ($2.7 million) credit unionhad declined to 3.3% by Dec. 31, well below NCUA's minimum capitalrequirement under PCA, and to less than 1% at March 31, accordingto Paul. "There was no viable plan to return it to an adequatecapital level," he said.
-
As AI and digital assets become mainstream, banks are spotting new opportunities to integrate payments with other activities.
July 4 -
House Republicans overcame internal divisions to narrowly pass President Trump's tax and spending package Thursday afternoon. The measure would cut the Consumer Financial Protection Bureau's funding level, among other provisions.
July 3 -
A new partnership with Google Cloud will let the Spanish bank offer Gemini to all staff after a successful ChatGPT deployment.
July 3 -
Atlanta-based CoastalSouth's initial public offering prices at $21.50 a share; Valley National Bancorp announces Lyndsey Sloan will succeed Gary Michael as general counsel; Webster Financial Corporation taps a new chief risk officer and appoints a new board member; and more in this week's banking news roundup.
July 3 -
Capital One closed the deal to buy the credit card provider in May and as part of the review process, decided to exit its home equity lending business.
July 3 -
In a rare move for a credit union, the Seattle institution has snapped up the 13-member team that created EarnUp's AI Advisor product.
July 3