Magazine article American Banker

Credit Unions' Central Bank Urged Not to Place Deposits at Foreign Banks

Magazine article American Banker

Credit Unions' Central Bank Urged Not to Place Deposits at Foreign Banks

Article excerpt

The credit union industry's central bank has been told by its regulator to suspend the practice of placing deposits with international banks headquartered outside the United States.

The National Credit Union Administration intervened last week, following news that U.S. Central Credit Union had placed a $255 million certificate of deposit with Banco Espanol de Credito, or Banesto.

The Spanish central bank seized Banesto on Dec. 28, and the administration began a review of U.S. Central's investments.

The regulator's chairman, Norman E. D'Amours, "strongly urged" U.S. Central to stop making foreign investments last week, said Robert E. Loftus, director of public and congressional affairs for the agency.

Request Carries Weight

However, it was understood that the administration request to the regulated institution had the effect of an order.

Mr. D'Amours "feels that this is something that should be held in abeyance while we're doing our study, in which we're trying to determine the appropriateness of these investments," Mr. Loftus said.

U.S. Central cannot make any foreign investments until at least July, when the review is completed, Mr. Loftus said.

The House Banking Committee is conducting its own investigation of U. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.