Montauk Credit Union, a big lender to taxi-medallion owners, was seized Friday by New York state regulators.
The action taken by the New York state Department of Financial Services against Manhattan-based Montauk Credit Union could be just the first. Several other credit unions have lent heavily against taxi-medallions, which are fast losing value due to the rise of Uber.
Montauk, along with Melrose Credit Union, Lomto Credit Union and Progressive Credit Union, sued the city and state attorney general’s office over the summer, urging them to stop Uber drivers from picking passengers who hail them using smartphones. But last week a state judge ruled against the lenders.
About $50 million on Montauk’s $167 million loan book is tied up in taxi-medallions, but the credit union had only $18 million in capital and about $6 million in reserves to absorb losses, according to a regulatory report. That’s a problem because as passengers hail fewer cabs, borrowers are falling behind on their loans and delinquencies are rising fast. Taxi medallions were worth as much as $1.1 million in 2013 but fell to $700,000 this past February and no medallion has been sold since.
Montauk has $13 million in loans that are 30 to 59 days overdue and about $4 million that are 60 days or more delinquent. That means its portfolio is deteriorating fast.
In a statement, DFS said Montauk operated in an “unsafe and unsound” manner and its operations would be taken over by the National Credit Union Administration, a federal regulator. Normal services for Montauk’s 2,900 member would continue, DFS said, but Montauk’s management team and board will be replaced. This is the first time DFS has seized a credit union since the agency was created in 2011.
“The NCUA is going to try to rescue the institution and keep it open, but there’s no guarantee they can do that,” said Keith Leggett, an economist who tracks credit unions.
Montauk’s exposure to taxi-medallions is large, but it’s dwarfed by rivals such as Queens-based Melrose, which has 78% of its loans in taxi-medallions.
Crap. I forgot to post the link for the story.
http://www.crainsnewyork.com/article/20150918/BLOGS02/150919849/first-uber-victim-state-regulators-seize-taxi-medallion-lender
Go Uber – any attack on the dinosaur industries that have and donate to political connections is a blessing to the general population – better service and lower prices by the innovators..
I think there is a parallel in food production and retail because the USDA etc does everything it can in the name of food safety to eliminate small business (potential food Ubers) and support big business. Eggs, milk and milk products, produce, small butcher shops, etc are kept out of business for food safety reasons yet the government protects GMOs and the use of dangerous chemicals. Half our food is imported and sold by big retailers but the producers and the imports get practically zero testing for chemicals and radiation etc. There is also a parallel with the Russian Communist who did the same to their small farmers. Bon appetit peasant slaves.
I really don’t know what Uber is other than some alternative Taxi sort of service (I’ve only used a Taxi once about 25 years ago so they really aren’t part of my world).
Can someone explain it is some detail so I understand what it is and why it seems controversial?
“Half our food is imported and sold by big retailers …” ——– robert h siddell jr
Agree with everything you said, except the above comment. A quick search reveals that we import about 15% – 20% of food consumed in ‘Murika
Now, there are SOME specific foods that approach 80% or more. Look at this frightening chart of shitfuk Chink food imported here ….
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Something I found while searching the above ….
“In 2009, U.S. food consumption totaled 654 billion pounds, or more than 2,100 pounds per capita.”
2100 pounds PER capita?? That’s 5.75 pounds per day!! Who the fuck eats almost six pounds of food per day???
(This would be AWD’s cue to post fatfuk pics. lol)
Anon
Let Search Engines be your friend.
https://www.youtube.com/watch?feature=player_detailpage&v=WlT-msMY3sI
Here’s a pretty entertaining site about Uber … by Uber drivers.
http://uberpeople.net/xfa-blog-home/
Sample comment below.
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My “craziest” story
“My husband committed suicide three days ago.”
That was the first thing the woman said to me, after getting into my car. She was a stranger – I was picking her up from a friend’s house late on Sunday night. She was middle-aged, clearly intoxicated, and obviously troubled. After working as an Uber driver for nearly six months, I had seen a number of strange things, but I was not prepared for this. I hadn’t even said hello yet.
“I’m so sorry,” I responded.
Then she started sobbing.
I drove in silence for awhile. I wasn’t sure what to say, so I kept quiet and I did my job – I drove.
It’s an interesting part of the job – the conversation part. Some people want to talk, some people don’t. I suppose it depends on how they view the experience – some people want to be “friends” with the driver, get to know them. Some don’t want me to say a word – to them I’m just a chauffeur. And some people, especially those with hectic schedules, just want some quieet time to themselves, and the long car ride provides a nice opportunity, in between whatever important meeting awaits them at their destination.
Eventually, the woman’s tears subsided. “Sorry about this,” she said.
“You don’t have to apologize,” I assured her. “I totally understand – you’re going through a really bad situation.” It didn’t sound great, but it was the best I could do.
Eventually, we reached her apartment complex. I don’t remember the last thing I said to her, but I remember that she didn’t really say goodbye so much as mumble incoherently, and stumble out of the car. I waited to make sure she got inside her apartment safely, and then left.
This happened right after the Holidays – a time when suicide rates are notoriously high. To lose a loved one so close to Christmas – I can’t imagine. I hoped she would be ok.
One of the skills you need to have as an Uber driver, something that we don’t get credit for, is the social skill to gauge a situation, and know how to behave appropriately. Like I said, depending on the passenger, you could act completely differently. Some passengers would appreciate an outgoing, jovial personality. Some would appreciate you trying to make conversation. Others have given me bad ratings for talking too much, for being too ingratiating. Still, I suspect others have given me bad ratings for being too curt.
I’ll never understand why someone chooses to sit in the front seat, and remain completely quiet the entire drive. I don’t know about you, but I find that silence incredibly awkward. I feel relief when they pull out their phone and start playing with it – at least I know they are preoccupied with something else. Or maybe that’s my own anxiety showing through.
When I first signed up for Uber, I got the impression from their website that they were trying to create a more professional, “chauffeur” image as compared to Lyft’s laidback culture. All black, with drivers dressed in suits opening doors for people. Even the name is slightly intimidating. I have driven for both companies, and I did notice a slight difference in the customer base. But not necessarily for the better. I had one repeat Lyft passenger who asked me to wait outside his house for 15 minutes. The next time, he asked me to wait outside his hotel for just as long. Eventually I wised up and told him I was going to have to cancel. My rating on Lyft was quite a bit lower than it was on Uber. Perhaps this was a lesson that I actually fare better in a “professional” environment than one where I’m expected to give the passenger a fistbump and treat him like a buddy. Again, maybe that’s just my social awkwardness coming through again.
I’ve worked customer service jobs before. I was a pizza delivery driver for years, and I was taught a simple formula for dealing with an upset customer. Apologize, give them what they want, then give them something extra. Similarly, with Uber and Lyft, I’ve learned a simple formula when starting a ride. Introduce yourself, ask them where they are going, if they have a preferred route, tell them if they need anything, just to say so, and then shut up. If they try to engage you in conversation, then respond, of course, but generally let the passenger set the parameters of the social interaction.
From time to time I’ll think back on that ride with the woman whose husband committed suicide. Did I say enough, or say the right thing? The entire situation felt awkward, with her crying in my backseat while I just drove. As I said before, she was very drunk. I wonder if she even remembers the incident, or what she said to me. I still bring up the incident from time to time when passengers inevitably ask me what my “craziest” story is. I notice their demeanor changes when I tell them it – probably because it wasn’t what they were expecting. Their idea of a “crazy” story is someone puking all over my car (that hasn’t happened yet, thank God) or some drunk girl offering to flash me for a free ride (sadly, that hasn’t happened either).
I’ve now been driving for Uber for over a year, and I would say it still stands as my oddest experience. But time will tell.
Stucky,
I watched that video and concluded it is a telephone application that connects you with dangerous people to drive you dangerously and charge you incredibly exorbitant amounts that is run by a company that engages in bullying anyone mentioning it in a negative manner into silence.
Why would anyone use such a thing? Seems like a trap for maroons to me, a one born a minute sort of thing maybe.
If I ever need a ride again that I can’t provide for myself with my own vehicles, I will definitely call a legitimate taxi company or just rent a car.
Anonymous-
It is like a freelance taxi service. How this is threatening NYC cabbies is because of the pay-to-play scheme of the taxi-medallions. Their is a limited amount of taxi-medallions and without competition they became valuable. People and companies drove the price of them up with speculation and these credit unions (along with other financial institutions I’m sure) used them as collateral for loans.
Uber arrived and ruined the party by created a unique style of competition. Now the price has plummeted and the loans are collapsing. I posted the story about the credit unions because credit unions have different rules and it is quite unusual for them to be over leveraged on loans and go bankrupt. And I am sure they are a small percentage of texi-medallion loses. Their loses are just more transparent.
A couple years ago we went to a wedding in NYC. Needed a taxi to get from the WTC to the midtown restaurant. Needed two taxis to fit everyone, so one of the people calls Uber. The first group got a huge black Lincoln Navigator. I was not in that group. We got some little piece of shit rice burner — a Corolla, or something. Uber is like a box of chocolates, you never know what you’re gonna get.
And that includes the DRIVER …. an AMATEUR most likely, and not a professional. Uber does a SHIT job screening their drivers. You just don’t know if you’re getting a good driver, or a driver with DUI’s … or a good citizen, or a fucker with a criminal record.
Driving in NYC is scary to begin with. No significant reason to get into a “cab” with some fuckin’ part time amateur, imho.
I’m not really impressed with Uber as a company. Mainly because you don’t know what you are going to get and the “company” part is just the app. Quite frankly, I’m not oppose to the idea taxi freelancing but this should include the type of car, verification of insurance, as well as a driving record. I wouldn’t want to get picked up in a hoopty by a driver with several moving violations or possibly someone with felonies.
It should be a level playing field, if Uber is allowed how can the municipalities still regulate taxis any different? Would almost make you think something is a foot. Ari Emmanuel, Rahm’s brother is an owner. Hmmm….