Small CUs Threatened WithDemise
WASHINGTON - (09/08/05) -- Dozens, maybe even hundreds, ofsmall credit unions and banks shuttered in the aftermath ofHurricane Katrina are expected to remained closed forever,according to regulators and lawmakers. "What concerns me are thesmall institutions, the credit unions and banks, whose lenders andclientele are exclusively in the affected areas," said Rep. BarneyFrank, D.-Mass., during a briefing before the House FinancialServices Committee Wednesday. "The danger is, that most of thesmall institutions that do their business in local areas will allbe driven out of business." Officials at NCUA, which said about 120credit unions in the area were closed down, along with hundreds ofbranches, in the wake of the storm, acknowledged that many of thosecredit unions will never reopen.