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As Thousands of Taxi Drivers Were Trapped in Loans, Top Officials Counted the Money

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“If governing body does not care, then free-for-all.” For decades, a niche banking system grew around the ‘well-connected’  taxi industry-- with half a dozen nonprofit credit unions specializing in medallion loans. By 2004  bank examiners wrote warnings about  risky practices ib interest-only loans.As lenders wrote increasingly risky loans, medallion prices neared $500,000 in 2006.to $600,000/20o8; and $800,000/ 2011, and as high as  one million Three of four cabbies refinanced their original loans under far riskier terms that left them in heavy debt.' . The  NCUA wrote a paper on the RISKS! Including refinancings of old loans and extensions required by banks, medallion owners signed at least 10,000 loans in that time.The failure of the credit unions cost the national credit union insurance fund more than $750 million, which will hurt all credit union members. '

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I began teaching in 1963,; Ba and BS in Education -Brooklyn College. I have the equivalent of 2 additional Master's, mainly in Literacy Studies and Graphic Design. I was the only seventh grade teacher of English from 1990 -1999 at East Side (more...)
 

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