reviews a report from the NCUA inspector general which looked at what brought down Eastern Financial Florida Credit Union. It wasn't Florida real estate that caused the failure, but collateralized debt obligations (CDOs):
But the inspector general’s autopsy report said that the major cause of the Eastern Financial collapse was its decision to dive head-first into toxic C.D.O.’s just as the mortgage mania was faltering.
As I reported
last year, the NCUA placed the credit union in conservatorship, and then it was merged into Space Coast Credit Union.