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.
Bethex Federal Credit Union has 5,5584 members and $12.95 million in assets.
According to the NCUA, normal member services at the credit union’s main office in Bronx will continue uninterrupted while the union is in conservatorship.
“NCUA placed Bethex into conservatorship to enable the credit union to continue regular operations with experienced management in place and correct previous operational weaknesses,” the NCUA said. “While continuing normal member services, NCUA will work to resolve issues affecting Bethex Federal Credit Union’s safety and soundness.”
According to the NCUA, member accounts at both credit unions remain safe and fully insured up to the maximums established in federal law.
Administered by NCUA, the Share Insurance Fund insures individual accounts up to $250,000, and a member’s interest in all joint accounts combined is insured up to $250,000.
The Share Insurance Fund separately protects IRA and KEOGH retirement accounts up to $250,000. The Share Insurance Fund has the backing of the full faith and credit of the United States.