ALEXANDRIA, Va. (1/22/14) --The National Credit Union Administration Tuesday, in its role as conservator, announced the liquidation of Bagumbayan CU of Chicago. It is the first federally insured credit union liquidated in 2014.
Last December, the NCUA and the Illinois Department of Financial and Professional Regulation assumed control of service and operations at Bagumbayan CU, and that action followed an October order that the credit union cease-and-desist allowing unapproved officials to attend board meetings or perform managerial and operational functions, and that it resolve recordkeeping issues and Bank Secrecy Act violations, and correct other issues.
Great Lakes CU of North Chicago, Ill., immediately assumed Bagumbayan's members and deposits Tuesday. Great Lakes is a federally insured, state-chartered credit union that serves more than 54,000 members and has assets of more than $626 million, according to the NCUA.
Great Lakes has been operating Bagumbayan under a management agreement with NCUA since Bagumbayan was placed into conservatorship.
NCUA, with approval from the Illinois Department of Financial and Professional Regulation, made the decision to liquidate Bagumbayan CU and discontinue its operations to protect the credit union from continued financial deterioration.
At the time of liquidation and subsequent purchase and assumption by Great Lakes, Bagumbayan CU served 44 members and had assets of $55,140, according to the NCUA. It was chartered in 1964, and provided limited financial services to members of the Bagumbayan community in Chicago.