2 loss reviews ahead, NCUA says

NCUA is conducting material loss reviews on Taupa Lithuanian CU of Cleveland, Ohio, and G.I.C. FCU of Euclid, Ohio, according to the agency’s semiannual report to Congress.

Taupa Lithuanian CU closed in July. Ohio’s financial institution’s division made the decision to liquidate the credit union and discontinue its operations after determining it had no prospect for restoring viable operations. The credit union served 1,154 members and had more than $23.6 million in assets.

G.I.C. FCU closed December 2012. The credit union served 3,476 members and had assets of approximately $15.5 million, according to the credit union’s last call report.

NCUA notes that The Federal Credit Union Act requires the agency’s Office of Inspector General to conduct a material loss review of an insured credit union if the loss to the National Credit Union Share Insurance Fund exceeds $25 million; Taupa Lithuanian CU met that threshold. However, the Dodd-Frank Act requires the OIG to assess cases involving smaller losses as well and determine if circumstances warrant an MLR. The OIG says G.I.C. FCU fits this category.

The MLRs will assess the causes of the institutions’ failure and the loss to the NCUSIF; and NCUA’s supervision of the credit union.

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