There is mounting evidence that taxi medallion prices in New York City are less than $200,000..
Crain's New York Business is reporting that on January 16th, 7 taxi medallions in possession of Aspire Federal Credit Union (Clark, NJ) were sold in auction for less than $200,000.
Crain's New York Business reported that "a stalking-horse bid of $875,000 for a block of five medallions ended up winning. Two additional medallions not included in the bulk sale sold for $189,000 and $199,000."
So at the low end, taxi medallions were valued at $175,000 each.
This is not good news for credit unions that have specialized in taxi medallion loans or participated in New York City taxi medallion loans.
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What’s total industry exposure?
ReplyDeleteIf you add up melrose, Progressive, LOMTO, quorum, United Teletech aspire what’s the exposure?
You’d have to estimate but...
What’s NCUA plan?
What’s ncua’s excuse?
Why didn’t McW and metsger come clean with this being the real reason they merged the funds?
To the NCUA - would GAAP (Generally Accepted Accounting Principals) approve your offset? You are taking the huge corporate federal credit union settlement to offset the bankrupt and busted taxi medallion credit union losses that have and will result in more credit union mergers/liquidations and expenses to the NCUSIF. Nice hat-trick. Merge the funds. Hide the losses of an inept, incompetent, NCUA/ regulator. Where were the NCUA Concentration Risk Specialists? Not at the corporate credit union bust. Not at the taxi medallion credit union bust. Held accountable? NO. Held responsible? NO. Reassigned to a higher NCUA pay grade? YES. To those still standing that did not participate or contribute to the taxi medallion collapse - budget 2018 assessments. You pay the assessments for those that took the risk, gambled and lost. They are the losers. You get to pay. NCUA is like the MAFIA...always collecting assessments - but it is a legal loophole of the government. Don't try this at home!
ReplyDeleteWhat’s total industry exposure?
ReplyDeleteAccording to NCUA, total taxi medallion exposure for credit unions is approximately $3.2 billion.
DeleteIt’s more than $3.5 Billion
DeleteWhat are the expected losses on this exposure?
ReplyDeleteWhat are the expected losses on this exposure?
ReplyDeleteA presentation by the New York Credit Union Association estimated potential losses to the NCUSIF from taxi medallion loans could range between $200 Million to $700 Million. Given that the current value for NYC taxi medallions are under $200,000, I believe losses will be on the higher end of the range.
DeleteIt’s more than $1.5 Billion
DeleteI think 1.5 Billion is about right. Arms length transactions in New York are about $175k and Chicago is about $30k. Taxi operators are waging an industry war with competitors who have massive budgets, unlimited access to capital, and tacit governmental approval. Whether they like it or not, the NCUA is now the taxi operators partner. If the NCUA want's to maintain any asset value for the taxi medallion, they need to take a different approach. What's it going to be? Slash and burn litigation or negotiated work-outs saving what little asset value is left.
DeleteSorry folks, this is not going to end well. We owe so much to the NCUA. Don't worry they will send you the bill.
ReplyDelete$3.2Billion x .25 (conservative) market value (based on recent sales of medallions)= $400M.
ReplyDeleteThat makes the top end of the loss range $2.8Billion (if they were all written at the peak of the market value range of $1.2 million.
Probably over $1Billion in assessments.