HARTFORD, Conn. – State regulators took over South End Mutual Benefit Association, a one-time $4 million credit union in adjacent Bloomfield, after management conceded it no longer could meet regulatory requirements to stay open.
Banking Commissioner Howard Pitkin said his office took action after discussions with South End Mutual's management revealed it was having difficulty satisfying regulatory requirements.
The institution also was unable to fully correct problems with its credit administration, lending practices, internal controls and audits, he said.
The credit union has seen its assets fall to $2.5 million over the past two years and reported losses of $149,161 for 2008 and of $14,829 for 2009. The 66-year-old credit union has just 360 members.
NCUA is expected to act as receiver and wind down operations of the credit union, the fifth failure of 2010.
