March 18, 1996

Oliver Garcia, Esq.

Williams & Connolly

725 Twelfth Street, N.W.

Washington, DC 20005

Re: Freedom of Information Act Appeal

(Your letter dated February 14, 1996)

Dear Mr. Garcia:

On December 14, 1995, Kate Connelly of your law firm filed a Freedom of Information Act (FOIA) request with Ms. Patricia Slye, NCUA FOIA Specialist, for the Confidential Statement of Grounds for Conservatorship for Capital Corporate Federal Credit Union (Statement). Richard Schulman, NCUA's FOIA Officer, denied your request pursuant to exemption 8 of the FOIA (5 U.S.C. 552(b)(8)) and Section 792.3(a)(8) of the NCUA Rules and Regulations (12 C.F.R. 792.3(a)(8)) in a letter dated December 21, 1995. We received your February 14, 1996 FOIA appeal on February 16, 1996. Although we believe that the Statement can be properly withheld pursuant to exemption 8, we have decided to use our discretionary authority to release the Statement. It is enclosed.

Sincerely,

Robert M. Fenner

General Counsel

Enclosure

GC/HMU:bhs

96-0226

SSIC 3212