Another taxi lender closed by regulators

Crain's New York Business reports:

Federal regulators have seized a fourth New York–area credit union for making too many dud taxi-medallion loans.

First Jersey Credit Union of Wayne, N.J., was closed Wednesday by the National Credit Union Administration. Its accounts were transferred to the USAlliance Federal Credit Union of Rye, N.Y. First Jersey had more than 9,000 members and $86 million in assets.

Like Melrose Credit Union, Montauk Credit Union and Lomto Federal Credit Union, First Jersey was seized after too many of its taxi-medallion loans went bad. Keith Leggett, an economist who tracks credit unions, estimates that taxi medallions accounted for nearly 20% of First Jersey's loan book at one point. Medallions in New York have lost about 80% of their value in the past five years amid the rise of Uber and other e-hailing apps.

The rent-seeking taxi cartel finally faces justice....