The Illinois Division of Financial Institutions issued an order of suspension against Good Shepherd Credit Union (Chicago, IL).
The state regulator found that the $101 thousand credit union was operating in an unsafe and unsound manner and was substantially out of compliance with the Illinois Credit Union Act.
According to the findings, the credit union has operated at a loss in four of the last five years and has seen a dramatic decline in its net worth ratio from 19.13 percent at the end of 2014 to 8.31 percent as of December 2015. The credit union had also failed to reconcile its general ledger account balances.
The order notes that the books and records of the credit union did not reflect the true condition of the credit union. This includes not adequately funding its allowance for loan losses accounts.
Other issues cited include the board of directors not meeting as frequently as required by law and failure to notify the Department of Credit Unions regarding resignations of board members.
The order temporarily suspended the operations of the credit union for 60 days.
In addition, Jim McNeil was appointed Manager-Trustee of the credit union.
Good Shepherd Credit Union is privately-insured by American Share Insurance.
Read the Suspension Order.
Read Order Appointing Manager-Trustee.
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