PHILADELPHIA – NCUA this afternoon took People for People Community Development CU under conservatorship while it tries to nurse the troubled CDCU back to health.
The federal takeover of the $1.1 million CDCU comes less than two months after NCUA hit it with a Cease and Desist Order requiring it to add to its loan loss reserves and clean up its financials.
The tiny CDCU had less than 1% net worth at the end of the third quarter.
People to People serves fewer than 1,600 members in an underserved 14.3 square mile area of north Philadelphia.
The Pennsylvania Department of Banking, which chartered People for People CDCU, concurred with the conservatorship decision.
People for People CDCU is the first credit union placed into conservatorship during 2012.
