NCUA’s one-member board liquidates two failed credit unions

Kyle Hauptman, the president of the National Credit Union Administration, voted to liquidate two troubled credit unions, a move that has raised procedural questions since Hauptman alone does not constitute a quorum of the NCUA board. 

On Tuesday, the NCUA placed Aldersgate Federal Credit Union — a $10.3-million asset credit union operated by a unit of the United Methodist Church in Marion, Illinois — into liquidation. 

That action comes on the heels of the NCUA closing the $173 million-asset Butler Heritage Federal Credit Union, in Middletown, Ohio, and arranged for the sale of some assets and transfer of share accounts to the Cincinnati Ohio Police Federal Credit Union. NCUA said there was no interruption to members’ services at both credit unions. Butler Heritage FCU had…