Feds Investigating Fraud Amid Taxi Scandal

Sep 10, 2019
Federal prosecutors are investigating possible credit union lending fraud in the New York City taxi industry, The New York Times reported.

The U.S. attorney investigation is the latest development in the city's taxi medallion scandal, in which irresponsible lending led by half a dozen credit unions led to financial ruin for thousands of taxi drivers and their families.

ICBA has called on Congress to investigate the National Credit Union Administration's failure to prevent credit union lending abuses in the scandal, which led to failures that have caused $750 million in losses to the taxpayer-backed National Credit Union Share Insurance Fund.

Meanwhile, ICBA has led the way in raising the profile of the troubling trend of large credit unions buying up smaller community banks, which made headlines in The Wall Street Journal last week.

ICBA continues working to address this issue via its Credit Union Task Force, Be Heard grassroots action alert to Congress, and exposingcreditunions@icba.org email address, which community bankers can use to flag examples of egregious credit union actions.

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