California Department of Financial Institutions Closes Caribbean-American Credit Union.

Business Editors

SAN FRANCISCO--(BUSINESS WIRE)--Nov. 22, 2000

Today the California Commissioner of Financial Institutions, Donald R. Meyer, closed Caribbean-American Credit Union, formerly located in the central district of Los Angeles. The credit union had total assets of approximately $97,000. The credit union had impaired capital and was insolvent.

"Caribbean-American Credit Union has been operating under conservatorship for over a year," Meyer said.

Immediately following the closure, Commissioner Meyer appointed the National Credit Union Administration ("NCUA") as Liquidating Agent of the credit union. Member share accounts of the credit union are fully insured by the NCUA up to $100,000.

In anticipation of the closure, the NCUA solicited bids for Caribbean-American Credit Union, and it has accepted an offer from Hughes Aircraft Employees Federal Credit Union ("Hughes") to acquire certain assets and assume the insured member share accounts of the failed credit union. "I am very pleased that an acquisition was successfully negotiated, as it provides assurance to member share account holders that their credit union services will continue without interruption," said Meyer.

The transaction will allow member share account holders of Caribbean-American Credit Union to continue business with Hughes with a minimum of disruption of credit union services to these customers.

DFI is responsible for regulating the State's laws relating to state-licensed banks, state-licensed savings and loans, trust companies, state-licensed offices of foreign banks, issuers of travelers checks and payment instruments (money orders), transmitters of money abroad, state-licensed credit unions, and state-licensed industrial banks. The department reports to Secretary Maria Contreras-Sweet of the Business, Transportation and Housing Agency and Governor Gray Davis.