Dual Exams Prompt Fear and Loathing in North Carolina
For another week, the dispute over the CAMEL rating disclosure involving the NCUA, the North Carolina Credit Union Division and the $23 billion State Employees’ Credit Union of Raleigh, N.C., continued to roil the state’s CUs as managers expressed new frustration and anxiety over dual exams.
“This is all a tempest in a teapot, and we’re the teabag,” said Joy Watts, president/CEO of the $78 million Carolina Postal CU of Charlotte, N.C., one of 52 state-chartered CUs subjected to lengthy, unscheduled NCUA exams, some of which began Jan. 21.
In a Feb. 6 letter to both Jerrie Jay, administrator of the state’s Credit Union Division, and Herb Yolles, NCUA’s Atlanta Regional director, the North Carolina league pleaded for resolution of the NCUA-SECU fracas. It also complained about the experiences of “our state-chartered credit unions receiving conflicting guidance or no guidance at all on issues ranging from how to amend a Call Report to the sharing of state-federal exam findings.”
“Our credit unions will be faced with new conflicts throughout the year,” wrote John Radebaugh, president/CEO of the league. He added, this “conflicting operational environment is a natural consequence of having two regulators that are not working together.”