United States Government Publishing Office publisher pbl distributor dst United States Government Accountability Office General Government Division author aut Government Organization text government publication eng GAOREPORTS Legislative Agency Publications gao legislative 2010-08-12 U.S. Government Printing Office 1995-02-28 monographic deposited born digital GA 1.13:T-GGD-95-107 https://www.govinfo.gov/app/details/GAOREPORTS-T-GGD-95-107 P0b002ee18037c85b f:tgg95107 DGPO 2010-08-12 2011-03-28 GAOREPORTS-T-GGD-95-107 machine generated eng fdlp REPORT GAOREPORTS-T-GGD-95-107 T-GGD-95-107 Federal credit unions Regulatory agencies Financial institutions Financial management Operations analysis Risk management Interest rates Losses Bank failures Investments NCUA Share Insurance Fund Testimony GGD Capital Corporate Federal Credit Union (Cap Corp), one of the largest of the nation's 45 corporate credit unions, failed in January 1995 and was placed into conservatorship by the National Credit Union Association (NCUA). As interest rates rose sharply in February 1994, many collateralized mortgage obligations in Cap Corp's portfolio lengthened in expected maturity and dropped in value. Rather than liquidating these investments at a loss to meet member withdrawals, Cap Corp borrowed in excess of regulatory limits. GAO traces Cap Corp's failure, in part, to inadequate board oversight of an inappropriate investment strategy. As of February 1995, the projected total loss on Cap Corp's portfolio was estimated at $60 million. The Comptroller General's testimony discusses the causes of Cap Corp's failure, the effectiveness of NCUA's supervision of Cap Corp, who bears the cost of the failure, and the extent of similar problems in the credit union industry. The Comptroller General also recommends steps that NCUA and Congress can take to enhance the safety and the soundness of the credit union industry. https://www.govinfo.gov/content/pkg/GAOREPORTS-T-GGD-95-107/html/GAOREPORTS-T-GGD-95-107.htm GAO/T-GGD-95-107 https://www.govinfo.gov/app/details/GAOREPORTS-T-GGD-95-107 Testimony GAO/T-GGD-95-107; Credit Unions: The Failure of Capital Corporate Federal Credit Union; Federal credit unions Regulatory agencies Financial institutions Financial management Operations analysis Risk management Interest rates Losses Bank failures Investments NCUA Share Insurance Fund