Connecticut Department of Banking Appoints NCUA Liquidating Agent; Member Funds Are Insured
ALEXANDRIA, Va. (April 8, 2010) -- The National Credit Union Administration (NCUA) today accepted appointment as receiver/liquidator of South End Mutual Benefit Association, Inc., a state chartered credit union in Bloomfield, Connecticut, following the State of Connecticut Department of Banking decision to close the credit union.
The Connecticut Department of Banking assumed control of South End Mutual Benefit Association, Inc. operations and appointed NCUA receiver after determining the credit union was experiencing problems with its earnings, delinquency, and management.
At the time of liquidation, the credit union had $2.4 million in assets and served 385 members. The credit union began operations in 1945 and served the residents of Hartford, County and nearby communities in Connecticut. This is the 5th federally insured credit union liquidated in 2010.
The NCUA Asset Management and Assistance Center will issue checks to members holding share accounts in the credit union within one week. Member accounts are insured up to at least $250,000 by the National Credit Union Share Insurance Fund (NCUSIF), a federal fund managed by NCUA and backed by the full faith and credit of the U.S. Government.
NCUA is the independent federal agency created by
the U.S. Congress to regulate, charter and supervise
federal credit unions. With the backing of the full
faith and credit of the United States, NCUA operates
and manages the National Credit Union Share
Insurance Fund, insuring the deposits of more than 101
million account holders in all federal credit
unions and the overwhelming majority of
state-chartered credit unions. At
Pocket Cents, NCUA also educates the public on consumer protection and financial literacy issues.