Thompson Demands Transparency, Accountability After JAFCU Liquidation
By CU Today Staff —
WASHINGTON—Rep. Bennie Thompson (D-MS) said he will press the NCUA for “full transparency and accountability” surrounding the collapse of Jackson Area Federal Credit Union, including what occurred, how members were affected and what protections are being put in place.
“Jackson Area Federal Credit Union has served thousands of families, public employees, and members of the Jackson and Hinds County communities for decades,” Thompson said in a statement Thursday. “The liquidation of this longstanding institution is a serious development, and my primary concern remains protecting the members who entrusted their hard-earned money to this credit union."
The statement followed the NCUA’s announcement that it liquidated JAFCU Wednesday after arranging a partial purchase-and-assumption transaction with Five Star Credit Union. Five Star purchased some assets and assumed the share accounts of JAFCU’s 15,704 members. NCUA said members should experience no interruption in service and that their accounts remain federally insured.
Thompson said NCUA provided those assurances to his office but added that members deserve an “orderly, transparent” transition that preserves access to their money. He said his office will continue engaging with the regulator about the circumstances leading to the liquidation—a move that introduces congressional scrutiny of the agency’s oversight and response.
As CUToday.info reported, revised June 30 Call Report data showed JAFCU’s assets had plunged from $162.4 million at year-end 2025 to $60.9 million, while the credit union recorded a $103-million year-to-date loss and negative net worth of $88.5 million. The liquidation came two days after former President/CEO Leigh Bridges pleaded guilty to theft from a federal credit union, making false statements involving a federal credit union and filing a false tax return in a scheme prosecutors said involved more than $69 million. The NCUA’s separate civil action against Bridges, her husband, Chad Bridges, and former branch manager Tina Funez alleges approximately $95 million was misappropriated.
Originally reported by CU Today.