The Senate has passed a measure which would require the Government Accountability Office to study NCUA management of the corporate credit unions and their financial crisis.
The GAO was asked to determine the reasons for the corporate credit union failures as well as to evaluate the NCUA reactions to those failures, including "protecting taxpayers, avoiding moral hazard, minimizing the costs of resolving such corporate credit unions, and the ability of insured credit unions to bear any assessments levied to cover such costs."
The legislation also asks GAO to evaluate the NCUA's use of prompt corrective action with the corporates and the agency's implementation of recommendations contained in previous reports from its own Inspector General.
The completed report would go to the Senate Committee on Banking, Housing, and Urban Affairs of the Senate, the House Committee on Financial Services of the House of Representatives and the Financial Stability Oversight Council.
