The financial statements for Yuma-based A. E. A. FCU show that the credit union received a capital injection of $20 million in the form of subordinated debt during the fourth quarter.
As a result, the net worth ratio of this troubled credit union went from minus 6.89 percent at the end of the third quarter to 2.69 percent at the end of the fourth quarter.
I suspect that the $20 million in subordinated debt is Section 208 assistance from NCUA.
I wonder what other moribund credit unions are receiving open bank assistance from NCUA.
Unfortunately, we will not know the answer because NCUA has decided not to disclose this information.
Keith - Once again you fail to understand or comprehend just how the NCUA works. A credit union publishes their CAMEL rating & the NCUA goes ballistic. Now you expect the NCUA to publish and disclose Section 208 bailout. Don't hold your breath. At least with the $20Million bailout AEA ought to be able to pay the NCUA assessments going forward. At the NCUA transparency only goes one way - the NCUA way.
ReplyDeleteWhere do I go to get me sum of that cheap federal money? Do you really have to pay it back? Is this like free money?
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