Federal credit union regulators seized AFL-CIO Federal Credit Union, Washington, because its records were in such disarray the institution could no longer function.
On Tuesday, examiners with the National Credit Union Administration closed the $1.5 million-asset institution, which serves 2,000 area hotel employees, after weeks of trying to sort out its books.
Three weeks ago the institution's board of directors stopped granting deposit withdrawals.
During a meeting with NCUA officials last week, the credit union board agreed to liquidate. AFL-CIO credit union officials could not be reached for comment.
"The situation couldn't continue the way it was, without members having access to their funds," said Cherie Umbel, NCUA spokeswoman.
The credit union was run by a paid manager who was released by the board on Aug. 10, Ms. Umbel said, adding that the agency had been tracking the credit union's troubled bookkeeping since November 1992.
NCUA is working with the union to find another institution for its members.
