NCUA Director of Congressional and Public Affairs John McKechnie dropped a bombshell in response to criticism that the agency acted too swiftly in its June 25 conservatorship of the $876 million Arrowhead Credit Union: Arrowhead fudged its March numbers.
"Arrowhead Credit Union posted inaccurate financial data in its March 2010 Financial Performance Report, specifically regarding losses in the loan portfolio," McKechnie said. "The credit union presented a safety and soundness concern, necessitating last week's conservatorship. The NCUA took the action to preserve credit union member assets and ensure continued service to members. The NCUA also put in place expert management in an effort to improve Arrowhead's declining financial condition."