State Banking Department Announces Closing of
South End Mutual Benefit Association
April 8, 2010
State Banking Commissioner Howard F. Pitkin today declared that the Board of Directors of South End Mutual Benefit Association, a credit union located in Bloomfield, Connecticut, have passed a resolution to cease operation and terminate its business. Commissioner Pitkin petitioned the Superior Court for the Judicial District of Hartford County to name the National Credit Union Administration (NCUA) as receiver.
The Connecticut Department of Banking assumed control of South End Mutual Benefit Association and appointed NCUA receiver after discussions with credit union management revealed its difficulty in meeting regulatory requirements and addressing deficiencies in credit administration, lending practices, internal controls and audit.
“It is unfortunate that the closure of South End Mutual Benefit Association has occurred,” commented Commissioner Pitkin. “But my primary responsibility is the protection of Connecticut consumers.”
At the time of liquidation, the credit union had $2.5 million in assets and served 360 members. The credit union began operations in 1945, and served all residents of Hartford and its neighboring communities.
Member accounts are insured up to at least $250,000 by the National Credit Union Share Insurance Fund (NCUSIF), a federal fund managed by NCUA and backed by the full faith and credit of the U.S. Government.