NCUA OK's PacCorp, WesCorp Merger Plan
ALEXANDRIA, Va.-The NCUA board voted in closed meeting last week to approve the merger of Honolulu-based Pacific Corporate FCU into Western Corporate FCU, subject to the Nov. 7 membership vote by PacCorp's 101 Hawaii and Guam member credit unions. PacCorp has $500 million in assets while WesCorp has almost $24 billion. The merger, expected to be effective Dec. 1, will leave 31 retail corporates. The NCUA board is expected to vote at next month's meeting on the proposed combination of Minnesota Corporate CU with Mid-States Corporate FCU in Illinois.
NCUA Takes Over Ailing Community Dev. CU
COLLEGE HEIGHTS, N.C.-NCUA has taken over financially ailing College Heights CU, dealing a blow to the credit union at the center of plans for a conglomeration of community development credit unions. The $3.9-million Fayetteville, N.C., credit union had a delinquency ratio of 13% and a net capital ratio of just 2.2% at June 30. Under NCUA conservatorship, the federal regulator runs the institution until it has improved its financial condition to be returned to the membership or until it is sold to another credit union as part of an assisted merger.
Whoops: $1.2 Billion Error
WASHINGTON-Shares in Fannie Mae slumped more than 5% last week before closing down 2.5% at $73.10, after the secondary mortgage giant reported a $1.2 billion error in its third quarter accounting. Though the error did not affected net earnings, investors apparently sold the stock on expectations the news will increase chances of congressional reforms of Fannie Mae and its secondary mortgage market sister Freddie Mac, already embroiled in an accounting scandal.
In a news release, Fannie said it revised its figures for total accumulated other comprehensive income downward by $1.1 billion, and total assets were increased by $100 million. Two weeks ago Fannie reported a 175% rise in third quarter earnings.
Woman Convicted In Scheme
CHARLOTTE, N.C.-A Charlotte woman was convicted of bank fraud in a scheme that diverted more than $800,000 in pay from three Bank of America executives to her account at Charlotte Metro CU. But jurors did not reach a verdict on whether Teresa Browning, 42, knew that the money that appeared in her credit union account this February came from BofA's payroll.
Prosecutors argued that Browning conspired with Christopher Parks, 26, who worked for a company providing payroll services to BofA, and Najla Arrington, 25, to redirect payroll and bonuses to Browning's credit union account.
Both Parks and Arrington pleaded guilty to conspiracy charges and are awaiting sentencing. The funds, a total of $808,000, were routed to Browning's credit union account on Feb. 14. That day, Browning withdrew $20,000 in cash and four cashier checks totaling $530,000, including one for $160,000 payable to herself. Two others in that amount were made out to Parks and Arrington.
