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Article: NCUA Costs Grow to Resolve Biggest CU Failure ever.
- Article from:
- Banking Wire
- Article date:
- September 18, 2008
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ALEXANDRIA, Va. -- NCUA said last week it paid $107.4 million to Patelco CU to induce the San Francisco credit union giant to acquire the remnants of Cal State 9 CU, the biggest credit union failure ever.
Cal State 9, which had more than $460 million in assets at one point last year, racked up a record $193.9-million loss for the first six months of this year, before being acquired by Patelco, according to NCUA.
Combined with last years $61.6 million in red ink, that makes a $255.5-million loss for the failed credit unionroughly what it will cost NCUA and the National CU Share Insurance Fund to resolve the massive failure.
Cal State 9 is one of ...