The government on Tuesday dropped efforts to recoup more than $100 million from former officers and directors of the now- defunct Capital Corporate Federal Credit Union.
In exchange, J. Clayton Brooke and Bruce A. Townsend, Cap Corp's president and vice president, respectively, agreed not to work for a corporate credit union. Also agreeing to a similar ban was Marcus B. Schaefer, former chairman of Cap Corp's asset-liability committee and now president of AT&T Family Federal Credit Union, Winston-Salem, N.C. Also, 13 former officers and directors accepted letters of reprimand.
The National Credit Union Administration seized Lanham, Md.-based Cap Corp on Jan. 31, 1995, because its portfolio was laden with risky collateralized mortgage obligations. Since then the NCUA had been investigating whether management was responsible for the investment losses.
"The NCUA board holds Cap Corp management responsible for causing the losses," the agency said in a prepared statement. "However, it concluded that it would not be cost-effective to seek recovery."
-Olaf de Senerpont Domis