Connecticut regulators investigate two credit union failures and suicide

August 10, 2008 by · Leave a Comment
Filed under: Bank Failure, Industry News 

Interesting, is the fact that this didn’t really get any press or media coverage. After reading through the article they mentioned that New London Security FCU only had 2% of its assets in loans. They mentioned that the typical ratio is 60-80% for their industry.

What it tells me at first glance is that either some fraud happened and that is why one of the senior advisers decided to commit suicide on the day the regulators took over or something else made them insolvent that they are deciding not to disclose at this time. We will try and keep tabs on this story to see if any new developments come out.

Story:

State legislators and Attorney General Richard Blumenthal want to learn more about why federal regulators quietly shut down two small Connecticut credit unions last month.

The closures in New London and Meriden have drawn scant attention, despite the fact that the 82-year-old investment advisor to the New London Security Federal Credit Union jumped to his death only hours after federal officials declared his institution insolvent on July 28.

Read more