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Nyc Taxi Lenders Face Risks After Uber Suit Dismissed


Ron Burgundy
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Uber representative registers people on smartphone during kick off of citywide jobs tour in Queens borough of New YorkBy Michael Erman NEW YORK (Reuters) - New York credit unions that have run up large exposures to the city's iconic yellow cabs are facing a sharp increase in loan losses after a judge threw out a legal challenge to ride-hailing service Uber Technologies Inc [uBER.UL]. Four credit unions that have lent out large sums of money for taxi medallions, which yellow cab drivers need to operate, had sued the city of New York, arguing that Uber's technology infringed on the drivers' exclusive rights to pick up passengers who hail them on the streets. Queens County Supreme Court Judge Allan Weiss dismissed the suit on Wednesday, saying that the city's Taxi and Limousine Commission has actively engaged in regulating the introduction of "e-hailing" services.




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