(This article appeared in The Washington Post on January 13, 1995.)
By Susan Helen Moran; Albert B. Crenshaw
A large, unconventional credit union in Prince George’s County faces merger or liquidation after losing more than $100 million on the risky securities known as derivatives, regulators said.

Capital Corporate Federal Credit Union of Lanham, or Cap Corp, whose members and owners are about 450 other credit unions rather than individuals, is carrying the losses on paper and is working with regulators on a possible merger with a similar institution in California. If that effort should fail, regulators might be forced to liquidate Cap Corp and pass tens of millions of dollars of losses on to its member credit unions.

Regulators don’t believe any of these owner credit unions, which serve employees of the White House, Pentagon, Treasury and Montgomery County government among others, will fail as a result of Cap Corp’s problems. …

To read the full text of this article, go to http://www.highbeam.com/doc/1P2-816071.html.

Article also quoted or cited in the following publications:

1. “Credit Unions Criticize Seizure of Cap Corp; Washington Post.

2. “Credit Unions Challenge NCUA’s Version of Cap Corp Oversight”
American Banker; May 31, 1996.

3. “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.

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