The much-anticipated GAO report on corporate credit unions and how the NCUA handled the sector’s crisis is expected to be released Wednesday, sources who had examined a draft of the document have told Credit Union Times.
The report was called for in the National Credit Union Authority Clarification Act of 2011, which read in part: “The Comptroller General of the United States shall conduct a study of the National Credit Union Administration’s supervision of corporate credit unions and implementation of prompt corrective action.”
A source who had read the report in detail said the GAO indicated that the failures of multiple corporate credit unions were due to “bad investment and business strategy” on the part of the corporates.
The thin report – said to be about 50 pages with some additional appendices, much smaller than the 100-plus page 2006 GAO report on credit unions – is said to offer criticism of the NCUA, particularly for delays in releasing financial details pertaining to the failed corporates and their investments.
But the report apparently also suggests that to adequately address such crises, NCUA would need “additional resources.”