Two New York credit unions placed into conservatorship

Montauk Credit Union, Bethex Federal Credit Union conserved by NCUA

The National Credit Union Administration placed two New York-based credit unions into conservatorship, citing “unsafe and unsound” conditions at each credit union.

According to a pair of announcements from the New York Department of Financial Services and the NCUA, Montauk Credit Union and Bethex Federal Credit Union were placed into conservatorship.

The NYDFS actually took possession of Montauk Credit Union, which is located in New York City, and appointed the NCUA as its conservator.

According to the announcement, the NYDFS placed Montauk Credit Union, which is a federally insured, state-chartered credit union with 2,893 members and assets of $178.5 million, into conservatorship because of unsafe and unsound conditions at the credit union.

“While continuing normal member services, NCUA will work to resolve issues affecting the credit union’s operations,” the NYDFS said in its statement. “Members can continue to conduct normal financial transactions, deposit and access funds, make loan payments and use shares.”

Additionally, the NCUA announced that it is taking Bethex Federal Credit Union in Bronx, New York, into conservatorship.

continue reading »

More News