California Department of Financial Institutions Places Cal State 9 Credit Union into Conservatorship
(San Francisco, CA) The California Department of Financial Institutions (DFI) today announced that Cal State 9 Credit Union was placed into conservatorship. Cal State 9 is a state-chartered, NCUA insured, credit union based in Concord.
The National Credit Union Administration (NCUA) was appointed as conservator by DFI. The NCUA will operate the credit union, continuing credit union services for all members. The NCUA also plans to explore opportunities to combine the credit union with a partner financial institution, through a merger with or purchase by another credit union. In the interim, NCUA's conservatorship will ensure safe and sound credit union operations.
"Cal State 9 has total assets of nearly $388 million and over 29,000 members. The credit union, however, had impaired capital and had become insolvent," said Carol D. Chesbrough, Interim Commissioner of Financial Institutions.
Member funds are federally insured up to at least $100,000 per account by the National Credit Union Share Insurance Fund (NCUSIF).
California's financial institutions are symbols of safety and soundness. Maintaining the integrity of financial services remains the primary mission of the DFI.
"The last credit union closed by the Department of Financial Institutions was in November 2000," added Chesbrough.
Cal State 9 Credit Union was originally chartered in 1948 to serve University of California employees. The Credit Union has six branch offices.
The NCUA will announce their acceptance as Conservator of Cal State 9 Credit Union in a press release, which will be available on their Web site at www.ncua.gov.
DFI supervises over 700 state financial institutions. The Department is responsible for administering state laws regulating state-licensed financial institutions: banks, credit unions, industrial banks, savings associations, trust companies, offices of foreign banks, issuers of travelers' checks and payment instruments (money orders), and money transmitters. In addition to posting information about licensees, the DFI Web site features consumer tips on a variety of financial topics. DFI reports to Business, Transportation & Housing Agency Secretary Dale E. Bonner and Gov. Arnold Schwarzenegger.