Quantcast
MobileRJ | RSS TwitterTwitter FacebookFacebook E-mail Alerts
Home manage Las Vegas Review-Journal
  Jobs Cars Homes Shopping Travel Weddings Golf Best of Las Vegas Photo   Search:

RECENT EDITIONS
Sun Mon Tue Wed Thu Fri Sat

Breaking News
Nov. 13, 2009
Copyright © Las Vegas Review-Journal

Ensign Federal Credit Union of Henderson shuts down

LAS VEGAS REVIEW-JOURNAL

EDS Credit Union, a large Texas institution, took over insolvent Ensign Federal Credit Union today, which served 7,900 members of the Church of Jesus Christ of Latter-day Saints.

Members of Henderson-based Ensign will not lose deposits because EDS Credit Union is assuming Ensign’s deposits and loans in a transaction arranged by the National Credit Union Administration.

Most Popular Stories
  • Three suspects arrested in shooting death of police officer
  • Three suspects arrested in shooting death of police officer
  • Station Casinos posts $455 million third-quarter loss
  • Two of three suspects in slaying of officer could face death penalty
  • Man sentenced to 15 years for federal tax crimes
  • Las Vegas police shoot at man fleeing after traffic stop
  • Las Vegas police shoot at man fleeing after traffic stop
  • Escalator accident at Caesars Palace still under investigation
  • Las Vegas man denied pardon in killing of abusive father
  • Man pleads guilty in death of girlfriend's child
  • Visitors authority urges officials to call off mock nuclear blast
  • Palms agrees to pay $100,000 to settle complaint




    • Service will continue without interruption, said John McKechnie, NCUA director of public and congressional affairs. Members of Ensign now are members of EDS Credit Union with a maximum of $250,000 in federal deposit insurance each.

    “It’s a very seamless transaction,” McKechnie said.

    The federal agency seeks to find a “most suitable merger partner” able to provide the same kind of service, rather than focusing on geography, he said.

    EDS Credit Union “is a very up to date credit union that is known for its member service,” McKechnie said. EDS Credit Union was chartered in 1974 to serve workers of the similarly named technology company founded by Ross Perot.

    An unsuccessful candidate for president, Perot sold EDS in 1984. The company now is part of Hewlett Packard Co. and does business as HP Enterprise Services.

    The Texas credit union is financially strong with $772 million in assets and 58,000 members. It’s headquarters are in Plano where EDS was located, but it has a branch in Santa Ana, Calif., and other locations in Michigan, Pennsylvania, New Jersey and Virginia.

    Analysts describe Ensign as a victim of the continuing Nevada recession. Losses mounted at Ensign as members lost their jobs and were unable to pay back loans.

    It had $98 million in assets on Sept. 30, but it had a negative net worth of 1.2 percent or $1.2 million, down from $475,000 three months earlier.

    Ensign lost $10 million in the first nine months of this year as its delinquent and charged off loans totaled $13.4 million.

    The credit union was founded in 1961. It kept a low profile in the news and did not respond to news media inquiries in recent months. However, Ensign’s Web site displays a favorable 2007 story about the credit union that appeared in the Las Vegas Business Press.

    CEO Diane Whitaker was quoted saying the credit union was open to devout LDS members and nonpracticing Mormons as well. The church did not operate the credit union, but Ensign emphasized the church in programs and advertising.

    A spot on the Web site offers a checking account for Mormon missionaries, which comes with a $100 cash bonus. The credit union industry has its historical roots in religious affinity groups. The first credit union, called St. Mary’s Bank, was started in 1908 in Manchester, N.H., McKechnie said. The credit union concept, in which financial institutions are owned by members, spread to other parishes and religious groups.

    In recent decades, credit unions more commonly served a corporation’s employees or workers in a particular sector, such as casino operators or teachers. Some credit unions became community-based and served anyone living or working within a given area.

    Ensign is the 13th federally insured credit union to be liquidated this year. In Nevada, Ensign became the fourth ailing credit union taken over with the assistance of regulators.

    Federal and state regulators have selected out-of-state credit unions to merge with Nevada credit unions. With the devastating downturn in Nevada’s economy, many credit unions here may lack the ability or appetite to assume the deposits and loans of a failed credit union.

    America First Credit Union of Utah took over Community One Federal Credit Union of Las Vegas in August. The next month, regulators seized Clearstar Financial Credit Union of Reno and transferred Clearstar deposits to United Federal Credit Union of Michigan. In October, Cumorah Credit Union Las Vegas was merged with Credit Union 1 of Rantoul, Ill.

    The scenario reminds some of the 1980s in Texas when the collapse of oil prices led to the collapse of the state’s major banks and out-of-state banks replaced them. So far, local banks acquired the deposits of three failed banks. However, Community Bank was liquidated and First National Bank became Mutual of Omaha Bank, which is headquartered in Nebraska.

    The Silver State has lost five banks since July 2008 when the recession led to increasing numbers of loan defaults.

    Contact reporter John G. Edwards at jedwards@reviewjournal.com or 702-383-0420.

    Newsvine Digg Fark Technorati reddit StumbleUpon del.icio.us Slashdot Propeller Mixx Furl Twitter MySpace Facebook Google Bookmarks Yahoo! Bookmarks Windows Live Favorites Ask MyStuff myAOL Favorites

    Leave Your Comment 9 Reader Comments
    Terms & Conditions
    The following comments are provided by readers and are the sole responsiblity of the authors. The reviewjournal.com does not review comments before publication nor guarantee their accuracy. By publishing a comment here you agree to abide by the comment policy. If you see a comment that violates the policy, please notify the web editor.

    Some comments may not display immediately due to an automatic filter. These comments will be reviewed within 48 hours. Please do not submit a comment more than once.
    Current Word Count:

    Note: Comments made by reporters and editors of the Las Vegas Review-Journal are presented with a yellow background.

    Konotori wrote on November 15, 2009 10:20 AM: Most of these posts sound like those hidden messages found at the bottom of those Viagra spams. Just like those, they are totally irrelevant to the subject of the article. Living proof that I am surrounded by complete morons. Way to prove me right! (This message is not intended for those who actually post intelligent comments.)


    ...Temujin...Khan..of..the..Yakka..Mongols... wrote on November 13, 2009 10:26 PM: .
    ..
    ...Errr, they wouldn't happen to have an unaccounted check for 96,000 dollars payable to the Hamptons would they...???
    ..
    .


    geometro wrote on November 13, 2009 09:19 PM: Not surprising at all. Credit unions were typically run by incompent management. They failed AND they didn't even pay taxes. Their original purpose was to "serve people of small means", but they just couldn't help but go for the gold by getting into commercial real estate lending. THIS is the REGULATORS fault for ever letting them make real estate loans and get into the general banking business. PERIOD.


    TK wrote on November 13, 2009 09:06 PM: "cull the mormon herd" is probably a government leech that is on the receiving end of everyones tax dollars and never worked an honest day in his life. A lot LDS folks I know are in the construction trade and got hit HARD. You are a moron...


    But...butt wrote on November 13, 2009 07:50 PM: But...but... butt... Obama assured us all that he had solve THE problem. Only the private sector can create meaningful jobs. The Government creates jobs that are paid for by the few remaining tax payers.


    cull the mormon herd wrote on November 13, 2009 07:41 PM: Easy solution. Cull FLDS-LDS felons. Where were Bishop Mitt and Orrin Hatch (crooner) during the Vietnam War? Draft-dodging is still a F-E-L-O-N-Y offense. For the past 70 years, the U.S. Selective Service Board (draft), has BANNED all religious military draft deferments. Bishop Mitt, "I wasn't drafted because I had a high lottrey draft number". A bigger lie was never told. TRUTH SERUM: Gov. George Romney was a Nixon cabinet member. And like cong. GHWB, both were determined their boys would never set-foot in Vietnam.

    Elijah Muhammad (WWII) and his son, Wallace D. Muhammad (Vietnam), they pulled the Mitt-trick. They also thought the draft board was shucking and jiving. Elijah, "I won't particiapte in the white man's JIHAD"! Elijah and Wallace bothe served 3 year federal prison sentences for religious draft evasion. Elijah was Muhammad ALi's religious advisor. Where is that Beck dude (Mormon). Mitt and Hatch owe the HOOD 3 years in federtal prison too. Madoff awaits "U-2". Madoff's mistress said Madoff is a great kisser too.


    Don Best wrote on November 13, 2009 07:11 PM: Now the second Mormon credit union failure here, after Cumorrah, another Mormon outfit. Funny, Mormons are very, very sharp when it comes to money. But only after they tithe their 10%. Then I think they turn into regular Wall Street vulture types, and don't let their religion interfere with making money. Or losing it, I think.


    donna wrote on November 13, 2009 06:44 PM: OBAMASUX SHUT YOUR MOUTH YOU THINK YOU KNOW IT ALL BUT INSTEAD YOUR A MORAN QUIT BLAMING EVERYTHING ON OBAMA AND PUT SOME OF THE BLAME ON YOUR OWN SHOULDERS. BECAUSE YOU ARE TO BLAME YOU HAVE NO MONEY TO PUT IN THESE BANK IF YOU DID THEY WOULD NOT BE GOING UNDER.


    obamasux wrote on November 13, 2009 06:19 PM: WAKE UP THE FEDS ARE TAKING OVER ALL THE BANKS 122 this year wtf wake up they are trying to control and ruine our financial system and make only a few federally managed banks