BRONX, N.Y. – NCUA on Friday liquidated Bethex Federal Credit Union, based here, exactly three months after the regulator placed the troubled CU into conservatorship.
Bethex FCU is the 10th federally insured credit union liquidation in 2015.
USAlliance Federal Credit Union of Rye, N.Y., immediately assumed Bethex FCU’s assets, member shares and most loans. USAlliance is a federally chartered credit union with a low-income credit union designation that has 83,102 members and assets of $1.07 billion, according to the credit union’s most recent Call Report.
According to NCUA, the new USAlliance members should experience no interruption in services, and the existing Bethex FCU office will remain open.
The federal credit union regulator placed Bethex FCU into conservatorship on Sept. 18. On Friday, NCUA said it made the decision to liquidate Bethex and discontinue its operations after determining the credit union was “insolvent with no prospect for restoring viable operations on its own.”
At the time of liquidation and subsequent purchase by USAlliance, Bethex served 5,824 members and had assets of $12.2 million, according to the credit union’s most recent Call Report. Chartered in 1970, Bethex Federal Credit Union served various groups in New York City.
When NCUA placed Bethex FCU into conservatorship it said it would “
In June, Bethex FCU
FinCEN did not accuse any credit unions of any illicit activities, but the common denominator for those institutions named in the confidential report is many of them serve money-services business (MSBs) such as check-cashing firms or remittances businesses – businesses many large banks refuse to serve due to the potential compliance risk, which some have suggested may be pushing these businesses to more aggressively court credit unions.
