(The Washington Post on January 24, 1995)

By Susan Helen Moran; Albert B. Crenshaw

Officials of a troubled specialty credit union based in the Washington area yesterday submitted a rescue plan to regulators and warned that if it isn’t approved, the credit union will likely be liquidated.

Capital Corporate Federal Credit Union of Lanham (Cap Corp), which is owned by about 470 other credit unions here and across the country, has lost more than $100 million on investments in derivatives, risky financial instruments whose value depends on an underlying asset, such as a stock or bond, to which they are linked. While not insolvent, Cap Corp has been unable to meet its members’ demands for funds.

The plan submitted yesterday would merge Cap Corp into Western Corporate Federal Credit Union (Wescorp), a similar institution in California. …

Articles that cite or grew from the original article above:

1. “NCUA probing ex-officials at failed Cap Corp.” (National Credit Union Administration, Capital Corporate Federal Credit Union)(Brief Article)
American Banker; August 28, 1995

Credit Union Regulator Moves Quickly to Sell Cap Corp Investments; Liquidation Seen Likely
American Banker; February 17, 1995

NCUA may sue 3d parties in Cap Corp case. (National Credit Union Administration, Capital Corporate Federal Credit Union)(Brief Article)
American Banker; June 19, 1995

Regulator prepares to sell off Cap Corp. (Capital Corporate Federal Credit Union)(Brief Article)
American Banker; April 10, 1995

D’Amato Chides Credit Union Regulator for Cap Corp Mortgage Securities Mess.
American Banker; March 1, 1995