The Region - News from July 2, 1986

The internal probe of the Los Angeles-area United Way’s finances, including more than $330,000 in loans to five of the charity’s executives, has been expanded to include nearly $91,000 in donations that were used to bail out a failing credit union in 1980-81, officials said. The credit union, which made loans to employees of United Way and its member agencies, was forced to fold because of bad loans, internal records show. The loan portfolio was so weak that savers would have lost 40% of their savings had it not been for the bail-out, five United Way officials and two others familiar with the liquidation said.