NEW CASTLE, Penn. – NCUA on Friday said it liquidated Lawrence County School Employees FCU and assigned the remnants of the one-time $6 million credit union to $22 million First Choice FCU in a purchase and assumption agreement.
Authorities have launched an investigation into the failure of Lawrence County School, which lost a whopping $3.4 million in the fourth quarter and had negative net worth of $2.4 million. Just a week before the board of the tiny credit union, now just $2.6 million, issued an extraordinary order limiting member withdrawals to preserve cash.
The liquidation follows the failure of Mutual Diversified FCU in Santa Ana, Calif., and of Friendship Community FCU in Clarksville, Miss., a few days before.
It is the fourth credit union failure so far in 2010.
