Editor’s Column: On Bank Transfer Day and Decker Nomination
Big news has been popping up all over the credit union industry, and while I’ve written about these topics before, they deserve follow up and re-examination.
First, to rip off a children’s rhyme, Bank Transfer Day has passed, so you’re the fool at last. The fools–no disrespect intended–being those who continue to say that Bank Transfer Day was a gimmick and nothing would come from it or even that it would have a negative impact on credit unions.
The report warned that if the funds were not discovered, they must be written off in the first quarter of 2011, which would likely result in a net worth drop to 10.77%. At year-end 2010 DGE FCU’s net worth was sitting pretty at 12.18%, according to its financial performance report. By first-quarter 2011, it plummeted to 10.11%. Presumably three quarters of a million dollars went missing from the $45 million CU.
Regrettably, accounting problems at small CUs is not terribly uncommon, but the fact the NCUA did not force the credit union to write the funds down for eight years is even worse. That amount didn’t creep up overnight.