NCUA Takes Over Troubled Texas Giant

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RICHARDSON, Texas – NCUA this afternoon took over ailing Texans CU, a one-time $2 billion credit union under siege the last three years by its troubled member business loan portfolio.

The 57-year-old credit union, chartered to serve employees of tech giant Texas Instruments, has struggled in and out of court with big losses related to its MBL CUSO, Credit Union Liquidity Services, running up losses exceeding $120 million since 2009. Texans a loss of $39.4 million for 2010 and just 2.8% net worth at year-end.

Troubled MBLs made by Texans’ CUSO including a $36 million financing a troubled real estate development in San Antonio, a $45 million MBL to an ill-fated mall redevelopment outside of Chicago, and a $30 million MBL financing a troubled mixed-used development in Rockwall, Texas. The credit union also lost a multi-million lawsuit over its firing of the head of its insurance CUSO, Texans Insurance.

Troubled MBLs made by Texans’ CUSO including a $36 million loan for a troubled real estate development in San Antonio, a $45 million MBL to an ill-fated mall redevelopment outside of Chicago, and a $30 million MBL for a troubled mixed-used development in Rockwall, Texas. All three MBLs are the subject of litigation.

The credit union also lost a multi-million lawsuit over its firing of the head of its insurance CUSO, Texans Insurance.

NCUA took the now-$1.6 billion credit union under conservatorship this afternoon with plans to either turn the credit union's prospects around or merge it into a healthy credit union. With 135,000 members, Texans is one of the biggest credit unions ever taken over by NCUA.Texans is the second credit union taken over this afternoon by NCUA, which earlier took Vensure FCU, a $4.7 million Mesa, Ariz., credit union under conservatorship.

 

 

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