Nevada's largest privately-insured credit union, Silver State Schools, received an open bank rescue from its private insurer, American Share Insurance (ASI).
The Las Vegas Review-Journal reported that Silver State Schools received a $22 million financial bailout from ASI.
Silver State School's CEO Dave Rhamy in announcing the open bank assistance from ASI wrote:
"In December, I wrote to you of Silver State School’s plan to immediately increase our reserves through a cooperative effort with our deposit insurance provider. I am pleased to announce that we have successfully completed this transaction. This capital infusion bolsters our general reserves now, and positions us to continue to help our members as we move forward."
It is being reported that the transaction will allow the credit union to meet the requirement of being adequately capitalized.
Credit union (C.U) is a cooperative banking association operated exclusively for the benefit of its members. The members pool their saving and borrow money at a rate of interest sometimes lower than the interest charged by most banks. C.Us are organized among the employees of companies or members of farm groups, labor unions, and educational, religious and social institutions. In 2007, there were about 45,000 credit unions in the United States of America with a membership of about 87 million. The unions had assets of more than $85 billion. Deposits in credit unions are insured up to $250,000 per account by the federal government.
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