How does a credit union operate

how does a credit union operate

Connecticut Attorney General's Office

Press Release

Attorney General, Banking Dept. Secure Receiver To Operate Failing Credit Union

Skip to main contentGo to the State of Connecticut WebsiteGovernor's SealState of Connecticut Attorney General SealGeorge Jepsen Office of the Attorney General

December 5, 2008

Attorney General Richard Blumenthal today, on behalf of the Department of Banking, secured a court order to appoint a receiver to operate a state-chartered credit union in danger of financial collapse.

The West Hartford Credit Union is in danger of imminent insolvency, impacting account holders and creditors, Blumenthal said.

In Superior Court today, Blumenthal's office obtained an order to appoint The National Credit Union Administration (NCUA) to act as receiver of the West Hartford Credit Union.

The NCUA will liquidate the 58-year-old credit union and investigate what prompted its demise. The credit union has $2.9 million in assets and 1,206 members.

Blumenthal said

that all deposits should be protected and insured by the National Credit Union Share Insurance Fund.

"Our paramount goal in this extraordinary action is to assure that account holders are fully protected and secured, especially in tough economic times," Blumenthal said. "No account holders should suffer loss, and we will seek to safeguard other assets and interests as well.

"For the first time in more than a decade, we must take this exceptional, but necessary, step to appoint a receiver over a state-chartered credit union. The West Hartford Credit Union's finances have so dangerously deteriorated that we must act to protect account holders and creditors. This receiver will liquidate and investigate the West Hartford Credit Union, ensuring accountability and stability for depositors.

"This credit union's demise threatens consumers in the worst possible economic climate. My office appreciates the excellent work done by banking department officials in ensuring that account holders and consumers are fully protected."

Content Last Modified on 12/18/2008 9:17:37 AM


Category: Credit

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