Year of Progress Pockmarked With Disasters and Missteps
A week after super storm Sandy slammed into the East Coast, New Jersey Gov. Chris Christie looked ahead to preparations for a nor’easter that was due to dump snow and rain on the already reeling Northeast.
“I’m waiting for the locusts and pestilence next,” said Christie.
Of the 2,000 credit unions located in Sandy's path, 838 were unable to operate, in varying degrees, during the difficult days following the super storm. And it took nearly a full week before most of those credit unions were be back in business to serve their members.
Although New Jersey was the hardest hit state, there were widespread power outages across New Jersey, New York, Connecticut and parts of eastern Pennsylvania. In the aftermath, mobile phone service was spotty and many roads were blocked because of massive flooding, fires, downed trees and downed power lines. Up to 8.5 million homes and business across the Northeast lost power. According to The New York Times, 93 people in the tri-state area lost their lives due to the storm.
Mandate? No Mandate?
Of course, this year everything turned political. Several Republican leaders took issue with Gov. Christie for lauding the president. Some said it may have cost Mitt Romney the election.
Since the Obama coalition firmly held together on Nov. 6, delivering a solid 332 electoral vote victory, it is unlikely that Gov. Christie’s hug had much of an impact. Romney ended up with 47% of the popular vote. (Forty-seven percent. Savor the irony.)
A calamity of the business lending kind befell Telesis Community Credit Union.
The NCUA announced on April 2 that it had contracted with the $1.3 billion Premier America Credit Union to manage the assets of the $318 million Telesis during Telesis’s conservatorship. Both credit unions are based in Chatsworth, Calif. The NCUA was named conservator of Telesis after the California Department of Financial Institutions took over the credit union March 23.
Charges from Ohio CU
This was not the only NCUA misstep in 2012. It stepped into one cow pie after the other throughout the year.
In a highly unusual move of going public, Commodore Perry Federal Credit Union of Oak Harbor, Ohio, told Credit Union Times in September that it had filed an exam appeal with the NCUA Supervisory Review Committee. The credit union alleged that an NCUA examiner harassed employees and retaliated against the credit union after it complained.
And once again the floated regulation was consigned to limbo as the agency backed off and offered no move to advance it.
The stench lingered from the NCUA’s insistence on separate state and federal examinations of all North Carolina state-chartered credit unions. Matz said the exams were prompted by the release of state CAMEL ratings by State Employees’ Credit Union of Raleigh, N.C.