Regulators wind up struggling Indianapolis credit union
INDIANAPOLIS (AP) – A credit union created nearly six decades ago by employees of the Indianapolis newspaper has been liquidated, two months after regulators put the financially troubled entity under trusteeship.
The National Credit Union Administration filed a liquidation action against the Federal Credit Union newspaper in Indianapolis on Wednesday. The Indianapolis office of the credit union has closed and its two ATMs are now inactive, the Indianapolis Business Journal reported.
The NCUA said in a statement that it “made the decision to liquidate the Indianapolis newspaper’s Federal Credit Union and shut down operations after determining that the credit union was insolvent and had no prospect of re-establish viable operations on its own ”.
The credit union was founded in 1962 by employees of The Indianapolis Star and has now disappeared from The Indianapolis News.
The NCUA took control of the credit union in January because of what it described as “unsafe and unsanitary practices” within the organization. The credit union’s financial position had deteriorated markedly over the past year, with soaring losses on bad debts.
About 500 credit union members, and most of their deposits, have been transferred to Elements Financial Federal Credit Union, based in Indianapolis. Member deposits are protected by the National Credit Union Equity Insurance Fund, which insures individual accounts up to $ 250,000.
The NCUA retained a portion of the fund’s deposits as well as all of its loans. Statebridge Co. LLC, based in Denver, Colorado, will act as the manager of these loans.