(This article appeared in The Washington Post on March 5, 1995.)
By Susan Helen Moran; Albert Crenshaw
Federal regulators’ seizure of a big special-purpose credit union in Prince George’s County last month will cost credit unions here and other parts of the country more than $20 million, and many of them are unhappy with the way the problem was handled.

Meanwhile, reaction on Capitol Hill, especially in the Senate Banking Committee, shows that there is little tolerance for regulatory forbearance in the wake of the savings and loan debacle.

The losses at Capital Corporate Federal Credit Union, known as Cap Corp, are not expected to cause major damage to any of the other credit unions and individual depositors in those institutions will suffer no losses, regulators said.

But the losses are painful enough — several hundred thousand dollars, in the case of many institutions — and some area credit union officials think they could have been largely avoided. …

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Article also quoted or cited in the following publications:
1. “Credit Unions Challenge NCUA’s Version of Cap Corp Oversight”
American Banker; May 31, 1996.

2. “Cap Corp freeze boosts liquidity demand.” (Capital Corporate Federal Credit Union; loans to credit unions by National Credit Union Administration’…
American Banker; December 30, 1994.

3. “Credit Unions Stage a Run at Corporate Seized by Regulator,” American Banker; February 8, 1995.