Monday, September 21, 2015

Conserved Bethex FCU Owes TARP Funds

Last Friday, the National Credit Union Administration (NCUA) placed Bethex Federal Credit Union into conservatorship.

Bethex FCU is currently holding $502,000 in subordinated debt issued through the TARP's Community Development Capital Initiative.

This $502,000 in subordinated debt represents the majority of the credit union's net worth of $745,570.

Without an injection of new capital, Bethex FCU will probably have difficulty repaying these TARP funds and may default on its TARP obligations.

I suspect that NCUA will engineer a merger of Bethex with another credit union, which would repay the TARP funds.




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