NEW YORKâThe $3-billion Municipal Credit Union, currently being managed under conservatorship by NCUA, reported $123-million in losses as of mid-year, according to its 5300 report. The losses pushed its net worth ratio to 3.41%, meaning it is significantly undercapitalized according to NCUA.
As CUToday.info reported here, in mid-May the New York Department of Financial Institutions assigned NCUA as conservator. The conservatorship followed the firing and arrest of its former CEO, Kam Wong, for embezzling nearly $10 million from the credit union. Wong, who was once hailed as an American success story, has since been sentenced to 66 months in prison.
At least one source told CUToday.info earlier the conservatorship was driven by unfunded pension liabilities at MCU, as reported here.
In its mid-year 5300, Municipal shows $151 million in total employee compensation and benefits, a substantial increase over the $21.7 million it reported for the same employee compensation and benefits line item at the end of Q1.
NCUA has declined to comment on whether it is seeking a merger partner for Municipal CU.