Sperry Board Dumps CEO
Senior management is the among the first casualties at Sperry Associates Federal Credit Union as the cooperative attempts to correct a number of troubled capital, operational and lending issues recently ordered by the NCUA.
The $345 million Sperry in Garden City Park, N.Y., announced Sept. 20 that Dan Capece, its interim president, and Sandy Albert, a human resources consultant, were no longer working at the credit union, effective Sept. 15.
On May 28, the NCUA entered into a letter of understanding and agreement with Sperry. After an exam, the regulator found that the credit union's net worth was below its risk-based net worth requirement as of Dec. 31, 2009 and therefore, considered undercapitalized. The NCUA said Sperry must charge off $3.1 million in nonperforming assets, which would lower the credit union's net worth to approximately 5.17% as of March 31.
Sperry was required to correct several problems, including credit losses associated with three private-label collateralized mortgage obligations. The NCUA said the credit union had not been performing proper due diligence over its participation lending program as evident by the large losses. It also granted loan modifications without a board approved policy or managerial procedure in place, the agency discovered.