NAFCU, CUNA Hit on 'Transparency' In Corporate Spinoffs
NAFCU is asking NCUA be more transparent and start using a standard bidding process before assets or services of conserved corporate are sold, it was disclosed this week.
CUNA said it too agrees that transparency concerns need to be addressed in the handling of the corporates.
In a letter sent to NCUA Chairman Debbie Matz right before the Veterans Day holiday, NAFCU said it specifically is concerned about an instance in which the asset of a conserved bridge corporate, which it did not identify, was sold recently "under circumstances where there was apparently no fully competitive and open bid process."
While NAFCU recognizes that in certain circumstances "exigencies may inhibit a fully open and competitive bid process, in our view the preeminent means to minimize losses and to ensure the selection of the best provider must be through a fully open and competitive bid."
Thus, NAFCU strongly urges NCUA "to issue broad-reaching requests for proposals to the public" before sales are made and to communicate with the industry via its website or by e-mails to CUs.
A spokesman for NCUA said it had just received the NAFCU letter signed by Fred Becker Jr., president/CEO, and had not had time to respond.
While no mention was made by CUNA of a letter to the agency, a spokesman for CUNA said when issues of transparency arise, "we will pursue those with NCUA as we talk with them frequently on a range of issues including the handling of the corporates." Both CUNA and NAFCU are slated to participate in a policy-making one-day Corporate Summit gathering tomorrow at a Chicago hotel near O'Hare Airport.
In their transparency comments, both trade groups also praised NCUA for its overall role in the corporate restructuring. "We are hearing from credit unions that they give NCUA high marks for its handling of the conserved corporate credit unions' legacy assets," CUNA said.
Becker wrote that NAFCU appreciates "NCUA's work in putting in place and implementing a comprehensive resolution plan."