NEW YORK – The $4.1-billion Municipal Credit Union has been returned to membership control after being operated under conservatorship by NCUA and the New York State Department of Financial Services (DFS).
“Municipal’s leadership and staff diligently worked to fix identified problems, guide Municipal through this conservatorship, and restore the credit union’s health, so that we can now return governance of the credit union to its members,” NCUA Chairman Todd M. Harper said. “Their efforts, along with the hard work of NCUA employees and the New York State DFS, have led to a credit union that is now on a sound footing and ready to provide essential financial services to its members.”
DFS took possession of Municipal Credit Union in May 2019 and appointed the NCUA as conservator to ensure the credit union’s financial stability and safe-and-sound operation. Municipal CU reported $111-million in net income at year 2021. Kyle Markland was named CEO of the credit union in late 2020.
Municipal Credit Union was placed into conservatorship after its one-time CEO, Kam Wong, was charged in 2018 with embezzling more than $3 million from the credit union by the U.S. Attorney’s Office for the Southern District of New York. Wong has since pleaded guilty and been sentenced to prison. More on that story can be found here.
‘Significant Victory’
“Municipal Credit Union’s emergence from conservatorship is a significant victory for the hundreds of thousands of New Yorkers who rely on the institution for their financial needs,” said DFS Superintendent Adrienne A. Harris in a statement. “This successful collaboration of state and federal regulators puts the credit union back under New York State supervision, and we look forward to its continued operation in a safe and sound manner.”
MCU has more than 586,000 members.