Just one hour after NCUA conserved Bethex FCU on Friday, the New York State Department of Financial Services on Friday took possession of $178 million Montauk Credit Union, and appointed NCUA as conservator.
The New York State Department of Financial Services said it placed Montauk CU into conservatorship because of "unsafe and unsound conditions at the credit union."
NCUA said while normal member services continue, the regulator will "work to resolve issues affecting the credit union's operations."
Members of Montauk CU will be able to conduct normal financial transactions, deposit and access funds, make loan payments and use shares, NCUA added.
Montauk CU is a federally insured, state-chartered credit union with 2,893 members and assets of $178.5 million, according to the credit union's most recent Call Report. Chartered in 1922, Montauk CU serves eligible members subject to the provisions of its bylaws, which could include any person, upon recommendation of any member in good standing and approval of the board of directors.
