The NCUA seized a federal credit union in Norfolk, Va., on Friday. They placed the $2 million NCP Community Development Federal Credit Union into conservatorship. The credit union will continue its operations with expert management taking over to fix weaknesses.
A report posted on the NCUA’s website said that the credit union saw its net worth drop from 13.72% at the end of 2011 to 7.76% in June 2012. By the end of last year, the credit union’s net worth was down to 3.83%.
Employee compensation at the credit union jumped from $9,819 in 2011 to $151,225 in 2012, making compensation in 2012 more than three times the credit union's loan income, according to the Credit Union Times.
This is the first federally insured credit union to be placed into conservatorship in 2013. Click here to read more.