Connecticut Department of Banking Appoints NCUA Liquidating
Agent; Member Funds Are Insured
April 8, 2010 -- The National Credit Union Administration (NCUA)
today accepted appointment as receiver/liquidator of South End Mutual Benefit Association,
Inc., a state chartered credit union in Bloomfield, Connecticut, following the State of
Connecticut Department of Banking decision to close the credit union.
The Connecticut Department of Banking assumed control of South End Mutual Benefit
Association, Inc. operations and appointed NCUA receiver after determining the credit
union was experiencing problems with its earnings, delinquency, and management.
At the time of liquidation, the credit union had $2.4 million in assets and served 385
members. The credit union began operations in 1945 and served the residents of Hartford,
County and nearby communities in Connecticut. This is the 5th federally insured credit
union liquidated in 2010.
The NCUA Asset Management and Assistance Center will issue checks to members holding
share accounts in the credit union within one week. Member accounts are insured up to at
least $250,000 by the National Credit Union Share Insurance Fund (NCUSIF), a federal
fund managed by NCUA and backed by the full faith and credit of the U.S. Government.
The National Credit Union Administration is the independent federal agency that regulates,
charters and supervises federal credit unions. NCUA, with the backing of the full faith and
credit of the U.S. government, operates and manages the National Credit Union Share
Insurance Fund, insuring the accounts of 90 million account holders in all federal credit
unions and the overwhelming majority of state-chartered credit unions.