The NCUA is trying to convince a federal judge that it should be allowed to continue conserving Vensure Federal Credit Union.
The agency argued that U.S. District Court Judge Rosemary Collyer should finalize her initial finding, expressed during a hearing in Washington, D.C., on May 11, that the NCUA had cause to conserve the credit union.
“It may be that had Vensure management been allowed to maintain the business through this perfect storm of events, they would have been able to hasten their attention to new lines of business,” the agency quoted Collyer as saying during the hearing in the U.S. District Court for the District of Columbia. “But they did not do so for months and months and I don't think can now be heard to cry wolf that they haven't been given the opportunity once the perfect storm happened.”
NCUA was responding to an argument that the credit union had advanced after the May 11 hearing but the credit union did not issue a redacted version of its briefing, which remained under seal.
NCUA took over the formerly New York-based and now Arizona-based credit union on April 15 after its largest member account was frozen as part of a federal investigation into the processing of transactions tied to Internet poker websites.
The credit union sued the agency, charging, in part, that it had ignored the steps the CU had taken to diversify its operations and that the agency had moved on the CU out of the fear of embarrassment.
Collyer did not say when a final ruling would be issued