NEW LONDON, Conn. - NCUA closed and liquidated New London Security FCU, a $12.7-million credit union that holds almost no loans.
The credit union, chartered in 1936, had a $5,000 mid-year loss and just $234,000 worth of loans. At the same time it was holding $12.1 million of investments.
NCUA said the credit union is insolvent and has no prospects of restoring viable operations.
At the time of the liquidation New London Security was holding more than 17% capital, and just 365 members.
The closure occurred the same day that Edwin Rachleff, an 82-year-old broker with A.G. Edwards who handled the credit union’s investments, committed suicide by jumping from the Mohican Senior Apartments. Officials would not say if there was a connection to the credit union closing.(c) 2008 The Credit Union Journal and SourceMedia, Inc. All Rights Reserved.http://www.cujournal.com http://www.sourcemedia.com
