The National Credit Union Administration (NCUA) liquidated six federal credit unions in the Philadelphia, Pennsylvania, area.
The six liquidated credit unions are Cardozo Lodge Federal Credit Union of Bensalem, Chester Upland School Employees Federal Credit Union of Chester, Electrical Inspectors Federal Credit Union of Bensalem, O P S EMP Federal Credit Union of Bensalem, Servco Federal Credit Union of Bensalem, and Triangle Interests % Service Center Federal Credit Union of Bensalem.
NCUA made the decision to liquidate the six federal credit unions and discontinue operations after determining the credit unions were insolvent and had no prospect for restoring viable operations.
According to NCUA, all six credit unions received management and recordkeeping services from Service Center for Credit Unions, Inc., in Bensalem.
NCUA will probably use these failures to once again call on Congress to grant the agency the same authority as other federal banking regulators to examine third-party service providers.
There have now been ten federally insured credit union liquidations in 2016.
Read the press release.
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combined these credit unions total about $1M in assets. Are you kidding me? Serious what the hell is going on at the NCUA? The total assets of these 6 add up to CHUMP CHANGE. Even the Small CU NCUA Help Desk could not help these losers. Keith, what is the cost to the insurance fund for these worthless 6 pseudo credit unions. Has the NCUA no damn standard for what constitutes a credit union?
ReplyDeleteUnfortunately, we will have to wait the fall to find out what the expected cost of these credit union failures are.
ReplyDeleteIt would be interesting to find out how many credit unions have assets under $10 million. In your opinion, what's the minimize size of a banking institution for it to be viable? Or at least what's the minimum size for you to feel comfortable with the management?
ReplyDeleteAt the end of 2015, there were 1,816 federally insured credit unions with less than $10 million in assets.
DeleteRegulatory burden is raising the minimum size for a depository institution to be viable. I have heard people state that the minimum size may be $500 million.