WASHINGTON – CUNA said it has depleted all $941,000 of membership capital shares in U.S. Central FCU, where it held two of the troubled corporate credit union’s seven board seats.
CUNA said $384,000 of the write-down went straight to its financials while the remaining $557,000 was accrued by CUNA affiliates, including the Defense CU Council, the National CU Foundation, Credit Union House and the National Action Response Program, a shadow organization through which CUNA and its state league affiliates may finance a national battle with the banks, such as the 1998 Campaign for Consumer Choice.
The various groups, which deposit funds in U.S. Central, gained access to the corporate through CUNA. CUNA, for example, had more than $1.2 million deposited with U.S. Central and CSS, its for-profit subsidiary, had more than $2 million deposited with U.S. Central at year-end 2009.
Under U.S. Central’s bylaws, CUNA had two representatives on the board, John Franklin, CUNA executive vice president who was representing CUNA President Dan Mica, and Bill Cheney, president of the California CU League, who was representing the CUNA-affiliated state leagues.
