“Unsafe and unsound practices” at a $162 million-in-assets Jackson, Miss., credit union led to its conservatorship by the federal regulator, the agency said late Wednesday.
Jackson Area Federal Credit Union (FCU) counts 15,500-plus members, the National Credit Union Administration (NCUA) said in a release. The agency said the credit union serves employees of the City of Jackson, Miss., as well as employees and elected or appointed officials of Hinds County. The agency added that it also serves 38 distinct groups, primarily composed of local government employees.
NCUA did not specify what the unsafe and unsound practices were that led to the conservatorship.
“Conservatorship” means the agency has taken control of the credit union, but it remains open and providing services to members under the federal agency’s control. The credit union has not failed and it may reopen in the future under its members’ control (through its elected board).
However, conservatorship can be a first step to its liquidation, with assets and deposits sold to another credit union.
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