YUMA, Ariz. – NCUA said this afternoon that AEA FCU, the one-time $410 million credit union which was victimized by a massive MBL fraud, continues to operate with zero capital, despite a $20 million emergency NCUA loan it is allowed to count as net worth.
AEA, whose former MBL director William Liddle is headed to jail as a result of the fraud, reported net income of $840,000 for the first quarter of 2012, but is still operating with negative $12 million of its own net worth. A new federal law allows such credit union and bank failures to count regulatory assistance, such as NCUA’s $20 million bailout loan, as regulatory net worth. As a result, NCUA says AEA actually has 2.85% net worth.
NCUA, which has been running the one-time credit union for the Arizona Education Association under conservatorship since December 2010, said during the first quarter of 2012, AEA completed an organization-wide rebranding effort, refreshed the credit union website to enhance navigation for members, unveiled a new home banking website with next generation mobile/text banking, launched a dynamic suite of checking accounts with a photo debit card option, and created a member-centric direct auto lending platform. Second quarter plans include release of an in-house Visa Credit Card program and joining the CO-OP ATM and Shared Branching Networks.
The now $245 million credit union is one of a handful of troubled credit unions being run by NCUA under conservatorship, including Texans CU, Arrowhead Central CU, Telesis Community CU, Keys FCU and Chetco CU, among others.
