Wednesday, November 2, 2016

Failed Auction on Foreclosed Medallions of First Jersey CU

ValueSquared, a short seller, reported in Seeking Alpha about last week's failed public auction for 3 foreclosed New York City yellow cab medallions.

These 3 medallions were collateral for defaulted loans possessed by First Jersey Credit Union. None of the 3 medallions was sold.

For the 2 unrestricted medallions, 2 people were willing to bid $400,000 to $410,000. It is reported that First Jersey Credit Union had $700,000 to 800,000 in outstanding balance on each defaulted loan.

In rejecting the bids, First Jersey Credit Union thought that the taxi medallions were worth more. The credit union believed it can lease out the medallions and would be better off than selling now at discounted prices.

However, do you believe New York City taxi medallions will go higher or lower in value?

Read the commentary.

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3 comments:

  1. AnonymousNovember 2, 2016 at 12:47 PM

    Lower.
    How is this not front page news?

    ReplyDelete
  2. AnonymousNovember 3, 2016 at 11:43 AM

    Dec,2014 1st JerseyCU reports NET LOSS -$236,000. Dec,2015 1st JerseyCU reports NET LOSS -$2,681,000. The trend does not look optimistic. Now they are going into the Medallion lease business. They failed at the Medallion finance business. What a stink-hole. How much must they lose before the NCUA shuts this joint down?

    ReplyDelete
    Replies
    1. AnonymousNovember 3, 2016 at 8:26 PM

      Answer...not until there are assessments to restore the NCUSIF.

      Delete

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