AARP May Close Credit Union: Industry sources...

AARP May Close Credit Union: Industry sources say the American Assn. of Retired Persons may close its 2-year-old credit union, which many bankers had feared would grow to be a formidable competitor. The credit union opened in May, 1988, with great fanfare. By drawing on the association’s 30 million members, the institution was expected to quickly become the largest credit union and an aggressive marketer of consumer financial services nationwide. However, growth has been slower than expected. In addition, the AARP Federal Credit Union has come under fire from its peers, who see its untraditional makeup as a political liability in their fight to preserve credit unions’ tax advantages.