SAGINAW, Mich.—The Michigan Department of Insurance and Financial Services has placed Valley State CU here into conservatorship, according to an order issued by the DIFS.
The DIFS order stated the $24.8-million CU was operating in an “unsafe and unsound condition," based on its review of the credit union. The department in its order did not cite other reasons for the action.
The state said that DIFS Director Patrick McPharlin determined that conservatorship was necessary to protect the public interest. The DIFS did not say whether the CU will be liquidated or merged.
Members of the credit union will not experience an interruption in services, the order stated. The credit union has 3,116 members and one office.