WASHINGTON, Sept 24 (Reuters) - The U.S. credit union regulator said on Thursday it seized Keys Federal Credit Union of Key West, Florida.
The National Credit Union Administration said Keys Federal had $180 million of assets and the institution will continue regular operations under the agency's conservatorship.
'The decision to conserve a credit union enables the institution to continue normal operations with expert management in place correcting previous service and operational weaknesses,' the NCUA said in a statement.
The seizure of Keys Federal comes after the NCUA seized two large corporate credit unions in March that served as clearinghouses for the credit union system.
The NCUA has seized multiple retail credit unions in recent months and has liquidated and sold their assets to other credit unions.
The credit union industry has not been as hard hit by deteriorating loans as the bank industry, which has seen 94 bank failures this year so far.
Bank regulators have said they expect failures to remain elevated through 2010 as the industry aims to cleanse their balance sheets of bad loans.
(Reporting by Karey Wutkowski; editing by Steve Orlofsky and Andre Grenon) Keywords: CREDITUNIONS/FAILURE (E-mail:karey.wutkowski@thomsonreuters.com +1 202 898 8374) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
The National Credit Union Administration said Keys Federal had $180 million of assets and the institution will continue regular operations under the agency's conservatorship.
'The decision to conserve a credit union enables the institution to continue normal operations with expert management in place correcting previous service and operational weaknesses,' the NCUA said in a statement.
The seizure of Keys Federal comes after the NCUA seized two large corporate credit unions in March that served as clearinghouses for the credit union system.
The NCUA has seized multiple retail credit unions in recent months and has liquidated and sold their assets to other credit unions.
The credit union industry has not been as hard hit by deteriorating loans as the bank industry, which has seen 94 bank failures this year so far.
Bank regulators have said they expect failures to remain elevated through 2010 as the industry aims to cleanse their balance sheets of bad loans.
(Reporting by Karey Wutkowski; editing by Steve Orlofsky and Andre Grenon) Keywords: CREDITUNIONS/FAILURE (E-mail:karey.wutkowski@thomsonreuters.com +1 202 898 8374) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.