ALEXANDRIA, Va. - Patelco Credit Union was among several bidders for the assets of failed Cal State 9 Credit Union. NCUA Spokesperson John McKechnie said Patelco was chosen because of the financial suitability of the package it offered, and because Patelco presented the best opportunity to continue a high-level of credit union service to existing Cal State 9 members.
McKechnie said member withdrawals at Cal State 9 were not significant, particularly when compared to similar situations at other credit unions in conservatorship. He noted, for instance, there was never a “run” at Cal State 9. “Shares declined as institutional investors and credit union members moved money after rates were brought down to market levels on certificates of deposit,” he said. “All of this was well controlled and planned.”
