LOS ANGELES-The Department of Financial Institutions last week liquidated Watts United CU, a tiny community development credit union serving the minority neighborhood of Watts, Calif.
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The 33-year-old credit union's assets had dwindled to just $800,000 from a high of $1.5 million in 2005, and reported losses in each of the last six quarters.
As the liquidating agent, NCUA will issue checks to the credit union's 1,000 members for up to $250,000 per account.
The state regulator made the decision after determining that the CU is insolvent and has no prospects for restoring viable operations.
