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COURIER L 6 IFE, FEBRUARY 7-13, 2020
The MCU Coney Island branch closed its doors on January 31. Photo by Zoe Freilich BANKRUPT!
Coney Island down to just one full-service bank
after MCU branch closure
BY ROSE ADAMS
Coney Islanders were left with just
one full-service bank after the Municipal
Credit Union closed its doors on Jan.
31, creating a “retail crisis” in America’s
Playground, according to the area’s
local councilman.
“We’re seeing banks close and leave.
We’re experiencing a retail crisis,” said
Mark Treyger.
The credit union closed six of its
branches, including their Surf Avenue
storefront, following a period of sustained
losses in the wake of a multimillion
dollar embezzlement scandal that
landed its chief executive in prison for
fi ve-and-a-half years — and ensnared
Brooklyn Supreme Court Justice Sylvia
Ash in legal jeopardy for an alleged
cover-up.
And with the fi nancial institution’s
closure, Coney Island and Sea Gate’s
30,000 residents now have to pile into the
Mermaid Avenue Citibank for full banking
services — or else travel to Brighton
Beach, a trip that can take up to 30 minutes
on public transit, locals said.
The number of full-service banks in
Coney Island has dwindled in recent
years, with Chase Bank closing its W.
17th Street location in the wake of damage
from Superstorm Sandy and abandoning
its mobile trailer soon after —
leaving a faulty ATM in its stead.
“Now all we have the Citibank on
Mermaid Avenue and W. 30th Street and
the ATM on Mermaid Avenue that’s literally
out of cash every other day,” Treyger
said.
The MCU closure marks the fi rst
time Coney Islanders fi nd themselves in
a true fi nancial desert, as the area has
always boasted at least two fully-functioning
banks, according to locals.
“We’ve never had a bunch of banks,
but at any given time we tend to have between
three and four,” said local Assemblywoman
Mathylde Frontus, who has
lived in the area for 35 years.
Frontus claims that banking institutions
see the area as a “poor neighborhood,”
and put their fi nancial bottom
line over servicing Brooklynites — with
increasingly harmful consequences.
The reduction in banks is also a
symptom of the neighborhood’s fl agging
commercial strips, according to Treyger,
who noted that nearly 15-percent of
storefronts sit vacant.
“Some of the small businesses are
asking, ‘What’s the vision for the future?'”
he said.
The fraught situation has led politicians
and local mavens to try and come
up with ways to stop the bleeding and
bring back banks and businesses.
Craig Hammerman, a local civic
guru, wrote a letter to the New York
State Department of Financial Services
asking the agency to enforce the Community
Reinvestment Act — a federal
law that encourages commercial banks
and savings associations to serve low-
and moderate-income neighborhoods.
“Whittling down access to full-service
banking to one bank that would
serve the 30,000 predominantly low- and
moderate-income residents of Coney Island
must surely suggest an urgent, unmet
need which requires the attention,
assistance, and intervention of your department,”
Hammerman wrote.
Treyger said that he alerted several
government agencies to the issue, and is
drafting a letter to the Federal Deposit
Insurance Corporation about the lack of
services.
Meanwhile, Frontus, who was recently
appointed to the State Assembly’s
Economic Development Committee, said
she will soon release a four-point economic
mobility plan that aims to bring
retail and banks to Coney Island.
“This plan is a commitment I’m making
to bring a range of services: education
and job training, entrepreneurial
assistance, home ownership, and fi nancial
planning,” she said.
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