NY credit union emerges from 2019 conservatorship; members in control again

A New York credit union conserved by state and federal regulators nearly three years ago was returned to the control of its members, the federal credit union regulator said Wednesday.

Municipal Credit Union of New York, N.Y., was conserved by the New York State Department of Financial Services (DFS) in May 2019. The state regulator, in turn, appointed the National Credit Union Administration (NCUA) as conservator. The NCUA said its role as conservator was to ensure the credit union’s financial stability and safe-and-sound operation; the credit union continued to serve members during the conservatorship.

“Municipal’s leadership and staff diligently worked to fix identified problems, guide Municipal through this conservatorship, and restore the credit union’s health, so that we can now return governance of the credit union to its members,” NCUA Chairman Todd M. Harper said in a release. “Their efforts, along with the hard work of NCUA employees and the New York State DFS, have led to a credit union that is now on a sound footing and ready to provide essential financial services to its members.”

Municipal, with 586,597 members and assets of more than $4 billion (as of the end of the third quarter 2021), serves persons working for the city of New York, along with other approved groups and associations, the NCUA said.

Control of Municipal Credit Union Returned to Members