Saturday, October 30, 2010

Storm Passed or Quiet Before?

No Bank Failures But One Credit Union Liquidation

Friday, October 29, 2010 - 10:30 PM by Ken - Bank Deals Guy

This is another Friday without a bank failure which is a surprise after last week's busy Friday in which 7 banks were closed. The total number of bank failures for 2010 remains at 139. However, one credit union was liquidated today. The NCUA issued a late press release today with the news that The Union Credit Union of Spokane, Washington was liquidated. It was a small credit union with just $11.9 million in assets.

That brings the total number of credit unions liquidated this year to 17. The NCUA arranged for two credit unions, Numerica and Alaska USA, to purchase and assume TUCU's assets and liabilities. According to the NCUA, "TUCU members will experience no interruption of service and immediately become members of Numerica Credit Union." The NCUA gave no indication if any members will lose uninsured deposits.

The FDIC did have some activity today. It released its September Enforcement Actions. The enforcement actions included 30 consent orders and 5 prompt corrective actions. PCAs are usually a very serious sign of an unsafe and unsound condition of the bank.