EDS to retain workers, branches

EDS Credit Union of Plano, Texas, which took over insolvent Ensign Federal Credit Union of Henderson on Friday, intends to retain Ensign’s 33 employees and its four branches, a credit union executive said Monday.

“We are looking to attempt, whenever possible, to retain everyone,” said Diane Gerstner, executive vice president of the Texas credit union.

Ensign was working with a skeletal staff, and EDS likes to employ more workers at its branches, she said.

In addition to keeping the four existing Ensign branches, EDS will try to reopen the former Ensign branch at 6265 S. Rainbow Blvd.

EDS typically is open to individuals who live, work, worship or attend school in a 10-mile radius of its branches. The Texas credit union is in discussions with the Nevada Financial Institutions Division about what its field of membership will be in Nevada beyond the 7,900 former members of Ensign, Gerstner said.

Ensign’s members belonged to The Church of Jesus Christ of Latter-day Saints, but the church didn’t operate the credit union. The first credit union in the country, St. Mary’s Bank, was established in New Hampshire in 1908 and most early credit unions were affiliated with churches or parishes, said John McKechnie, director of public and congressional affairs for the National Credit Union Administration.

All of Ensign’s members deposits were under the $250,000 limit for federal insurance, and they will continue to be insured by the federal government.

EDS, a federally insured credit union with 57,000 members in 50 states and 24 foreign countries, saw buying Ensign as a way to expand its presence in the West. In May, it acquired First American Federal Credit Union in Santa Ana, Calif.

EDS has applied to Texas regulators for permission to change its name to InTouch.

It originally served workers at Electronic Data Systems or EDS, the company founded by Ross Perot. That company is now part of Hewlett-Packard and has employees in California. Some of these workers belong to EDS Credit Union.

Ensign “is a wonderful organization, and it was and will continue to provide excellent service,” Gerstner said.

Ensign was insolvent with negative net worth of 1.2 percent, or $1.2 million, by Sept. 30, the end of the third quarter. Ensign lost $10 million in the first nine months of this year because of loan problems.

Ensign made business loans and offered a variety of business services, but the credit union’s failure resulted from the general downturn in the economy, not because of problems in any single customer segment, Gerstner said.

“It was the economy in general, the loss of jobs” that led to financial woes at Ensign, she said.

EDS is “very conservative” in making business loans and will focus on consumer financial services, she said.

Ensign was the 13th federally insured credit union liquidated this year. In Nevada, Ensign became the fourth ailing credit union to be taken over with the assistance of state and federal regulators. All four were merged with out-of-state credit unions.

The trend is reminiscent of the 1980s in Texas, where the collapse of oil prices wiped out many major banks, and out-of-state banks replaced them. So far, local banks have acquired the deposits of three failed banks, another was liquidated and a Nebraska bank acquired the fifth bank to fail since July 2008.

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

Bellagio, MGM Resorts International’s luxury hotel turns 20
The more than 3,000-room Bellagio hotel is situated on the site of the former Dunes Hotel. The Dunes was imploded in 1993, and construction of the Bellagio started in 1996. It cost $1.6 billion to build, making it the most expensive hotel in the world at the time. The Bellagio was former Wynn Resorts Ltd. Chairman and CEO Steve Wynn’s second major casino on the Strip after The Mirage. MGM Resorts International acquired the property from Steve Wynn in 2000. (Tara Mack/Las Vegas Review-Journal)
Facial recognition software at G2E – Todd Prince
Shing Tao, CEO of Las Vegas-based Remark Holdings, talks about his facial recognition product. (Todd Prince/Las Vegas Review-Journal)
Former NBA player, Shaquille O'Neal, speaks about his new Las Vegas chicken restaurant
Former NBA player, Shaquille O'Neal, speaks about his new Las Vegas chicken restaurant. Bizuayehu Tesfaye/Las Vegas Review-Journal @bizutesfaye
Bobby Baldwin to leave MGM
MGM Resorts International executive and professional poker player Bobby Baldwin is set to leave MGM.
Caesars has new armed emergency response teams
Caesars Entertainment Corp. has created armed emergency response teams. They are composed of former military and law enforcement officials. "These teams provide valuable additional security capabilities,” Caesars spokeswoman Jennifer Forkish said. Caesars is hiring Security Saturation Team supervisors, managers and officers, according to LinkedIn. The company did not say how many people it plans to hire for the units. (Las Vegas Review-Journal)
Las Vegas, airlines prepare for CES
CES in January is expected to attract more than 180,000 attendees. (Las Vegas Review-Journal)
AGS partners with Vegas Golden Knights
AGS is the nation’s second-largest manufacturer of Class II slot machines used primarily in tribal jurisdictions. It announced a marketing partnership with the Vegas Golden Knights NHL team. (Las Vegas Review-Journal)
Lehman Brothers bet big on Las Vegas
Lehman Brothers collapsed 10 years ago, helping send the country into the Great Recession.
Fremont9 opens downtown
Fremont9 apartment complex has opened in downtown Las Vegas. (Marcus Villagran/Las Vegas Review-Journal) @marcusvillagran
Ross & Snow launches in Las Vegas
Luxury shoe brand Ross & Snow has opened in Las Vegas, featuring "functional luxury" with premium shearling footwear. (Bailey Schulz/Las Vegas Review-Journal)
Remote Identification and Drones
DJI vice president of policy and public affairs discusses using remote identification on drones. (Bailey Schulz/Las Vegas Review-Journal)
Drones and public safety in Nevada
Two representatives in the drone industry discuss UAV's impact on public safety. (Bailey Schulz/Las Vegas Review-Journal)
Frontier Airlines to launch flights from Las Vegas to Mexico
Frontier, a Denver-based ultra-low-cost carrier, will become the first airline in more than a decade to offer international service to Canada and Mexico from Las Vegas when flights to Cancun and Los Cabos begin Dec. 15. (Rick Velotta/Las Vegas Review-Journal)
MGM Resorts International CEO Jim Murren addresses Oct. 1 lawsuits
MGM Resorts International Chairman and CEO Jim Murren addresses criticism his company has received for filing a lawsuit against the survivors of the Oct. 1 shooting. (K.M. Cannon/Las Vegas Review-Journal)
MGM Resorts International opens the doors on MGM Springfield
Massachusetts’ first hotel-casino opens in downtown Springfield. The $960 million MGM Springfield has 252 rooms and 125,000-square-feet of casino. (K.M. Cannon/Las Vegas Review-Journal)
MGM Resorts International prepares to open MGM Springfield
Las Vegas-based MGM Resorts International gave news media and invited guests a preview of the $960 million MGM Springfield casino in Massachusetts. The commonwealth's first resort casino will open Friday, Aug. 24. (K.M. Cannon/Las Vegas Review-Journal)
A Walk Through Circus Circus
It only takes a short walk through Circus Circus to realize it attracts a demographic like no other casino on the Strip: families with young children. (Todd Prince/Las Vegas Review-Journal)
Morphy Auctions, a vintage slot machines seller, wants gaming license
Vice president Don Grimmer talks about Morphy Auctions at the company's warehouse located at 4520 Arville Street in Las Vegas on Thursday, Aug. 16, 2018. (Rick Velotta/Las Vegas Review-Journal)
Nevada's venture capital money doesn't stay in state
Zach Miles, associate vice president for economic development for UNLV, said there’s venture money in Southern Nevada, “but trying to find the right groups to tap into for that money is different.” According to a 2017 report from the Kauffman Foundation, Las Vegas ranked number 34 out of 40 metropolitan areas for growth entrepreneurship, a metric of how much startups grow. With a lack of growing startups in Las Vegas, investment money is being sent outside of state borders. The southwest region of the U.S. received $386 million in funding in the second quarter, with about $25.2 million in Nevada. The San Francisco area alone received about $5.6 billion. (source: CB Insights)
Neon wraps can light up the night for advertising
Vinyl wrap company 5150 Wraps talks about neon wraps, a new technology that the company believes can boost advertising at night. (Marcus Villagran/Las Vegas Review-Journal) @brokejournalist
Nevada on the forefront of drone safety
Dr. Chris Walach, senior director of Nevada Institute for Autonomous Systems, talks to a reporter at NIAS's new Nevada Drone Center for Excellence of Public Safety, located inside the Switch Innevation Center in Las Vegas. K.M. Cannon Las Vegas Review-Journal @KMCannonPhoto
Motel 8 on south Strip will become site of hotel-casino
Israeli hoteliers Asher Gabay and Benny Zerah bought Motel 8 on the south Strip for $7.4 million, records show. They plan to bulldoze the property and build a hotel-casino. Motel 8 was built in the 1960s and used to be one of several roadside inns on what's now the south Strip. But it looks out of place today, dwarfed by the towering Mandalay Bay right across the street.
Project billed as one of the world's largest marijuana dispensaries plans to open Nov. 1
Planet 13 co-CEO Larry Scheffler talks about what to expect from the new marijuana dispensary, Thursday, July 19, 2018. (Marcus Villagran/Las Vegas Review-Journal) @brokejournalist
Oasis Biotech opens in Las Vegas
Brock Leach, chief operating officer of Oasis Biotech, discusses the new plant factory at its grand opening on July 18. (Bailey Schulz/Las Vegas Review-Journal)
News Headlines
Add Event
Home Front Page Footer Listing
You May Like

You May Like