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New Year's Eve Credit Union Liquidation


The last institution to fail in 2009 turned out to be a credit union. The NCUA just reported that it liquidated HeritageWest Federal Credit Union of Tooele, Utah. Chartway Federal Credit Union purchased and assumed HeritageWest Federal Credit Union’s assets, loans and shares. Unlike many credit union liquidations this year, this one wasn't tiny. It had $311 million in assets and served 40,000 members.

It appears that no member will lose any of their deposits that are over the NCUA limit. However, the NCUA press release doesn't provide many details. The FDIC does a better job on reporting on these details.

According to the NCUA press release, this is the 15th liquidation of a federally insured credit union in 2009. The number of bank failures in 2009 is 140. The last bank failures occurred on December 18th.

HeritageWest's ratings for safety and soundness were at the lowest level at both BauerFinancial (0 star) and Bankrate (1 star).


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Rick@Rickety (anonymous)   |     |   Comment #1
The Deseret News has a story on the credit union but it doesn't say much:
Anonymous   |     |   Comment #2
I am deceased as of 01/01/2010. Realize there is nothing to live for.

I guess I am the next to go after the credit union liquidation.

Cest La Vie
Anonymous   |     |   Comment #3
Anonymous   |     |   Comment #4
Anonymous   |     |   Comment #5
Credit unions sometimes have bad financial books as well (especially when you have deadbeat members).

BTW, Mexicans are wary of 2010 because they had big tumultuous events back in 1810 and 1910.