Municipal Credit Union
| Company type | Credit union |
|---|---|
| Industry | Financial services |
| Founded | 1916 |
| Headquarters | New York City , United States |
Area served | New York metropolitan area |
Key people | Kam Wong (former CEO) |
| Products | Financial services |
| Website | www |
Municipal Credit Union (MCU) is a credit union chartered by the state and headquartered in New York City. It operates under the supervision of the National Credit Union Administration (NCUA). As the largest credit union in the New York metropolitan area, MCU managed assets totaling $2.68 billion as of 2018 and serves around 425,000 members through a network of 18 branch locations.
History
Established in 1916 to provide financial services to municipal employees of New York City, MCU was supported by then-Mayor John Purroy Mitchel as a safer alternative to exploitative lending practices.
On November 2, 1977, due to issues with loan defaults and misconduct within its board, the New York State Banking Department temporarily assumed control of MCU.
In 1986, following the downfall of Hyfin Credit Union caused by fraud and embezzlement allegations, Hyfin was consolidated into MCU.
After the events of September 11, a system malfunction permitted some members to withdraw funds exceeding their account balances, leading to $15 million being illicitly withdrawn from MCU ATMs. Authorities charged 118 individuals in connection with this incident.
In February 2018, CEO Kam Wong was suspended and subsequently arrested on charges related to embezzlement and fraud during a period of conservatorship. Investigations revealed Wong had misappropriated millions over at least five years, with reports indicating significant expenditure on lottery tickets. He entered a guilty plea in November 2018 and received a prison sentence of five and a half years.
MCU emerged from conservatorship in February 2022.