SAN DIMAS - Federal regulators have taken over two large credit unions, one of them based here in Southern California.
Western Corporate Federal Credit Union, based in San Dimas, as well as Kansas based U.S. Central Federal Credit Union have been put into conservatorship.
A conservatorship enables the government to operate a financial institution.
Corporate credit unions provide financing and investment services to retail credit unions.
Some of the 28 corporate credit unions in the U.S. have sustained steep losses on
paper from the depressed value of the mortgage-linked securities they hold.
Feds Seize Control of Local Credit Union
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