By JEFFERSON HEALTH CARE COOPERATIVE BANK – JANUARY 09: A national cooperative banking agency was declared bankrupt in January, and the U.S. Federal Reserve has declared it insolvent.
It’s the latest chapter in the saga of the National Cooperative Bank.
(Photo by Spencer Platt/Getty Images) The National Cooperative Banking Agency (NCBA) was established by Congress in 1934.
The National Bank Act of 1934 required the Federal Reserve Board to keep track of the nation’s credit institutions, and established the NCBA as a central bank.
The NCBA is still the primary credit institution of the U