News
Sen. Duff, Rep. Barry make a second request to Banking Department for report on solvency
By Senator Duff's office
Aug 1, 2008 - 4:33:20 PM

The co-chairs of the General Assembly’s Banks Committee want the state Department of Banking to respond to a request made last month and to report on the status of Connecticut’s banks and credit unions.

On July 15, state Senator Bob Duff (D-Norwalk) and Representative Ryan Barry (D-Manchester) asked Commissioner Howard F. Pitkin to provide the Banks Committee with information regarding the solvency of all state-chartered banks and credit unions and of all federally chartered banks and credit unions in operation in Connecticut.

Since that request, which has gone unanswered, two credit unions in the state have been liquidated by the National Credit Union Administration.

“On July 16, the National Credit Union Administration (NCUA) liquidated the Meriden F. A. Credit Union, an institution in operation since 1954. On July 28, the liquidated the New London Security Federal Credit Union, an institution chartered in 1936 and holding $12.7 million in reported assets at the time of liquidation,” Senator Duff and Representative Barry wrote today. “We feel that it’s imperative that we are fully prepared for these situations.”

Their initial request followed the recent collapse and federal takeover of IndyMac Bank in California, the largest savings and loan bank in Los Angeles and the seventh largest mortgage originator in the United States. The lender succumbed to the pressures of tighter credit, falling home prices and rising numbers of foreclosures nationwide.

Connecticut currently has the nineteenth highest rate of foreclosures in the country, according to the most recent reports from RealtyTrac, Inc.

© Copyright by NorwalkPlus.com