If NCUA and state examiners had been more aggressive in their oversight of 10 failed credit unions, losses to the NCUSIF could have been stopped or mitigated, according to a report by the NCUA's Office of Inspector General.
North Star Business Services LLC, a CUSO that did business with the liquidated Ensign Federal Credit Union, has been hit
The failure of U.S. Central Federal Credit Union was caused by the risky investment practices of its management and by insufficient examinations by the NCUA and weak regulation.
Fraudulent activity covered up by top leadership and a failure by NCUA examiners to adequately follow up on red flags caused the failure of St. Paul Croatian FCU, according to a report by the NCUA's Office of Inspector General.
Poor decisions by management, including risky investments and inadequate oversight by examiners, caused the failure of Ensign FCU and Clearstar Financial CU, which cost the NCUSIF $42 million, according to reports.
Poor decisions by management caused the failure of Ensign FCU and Clearstar Financial CU, which cost the NCUSIF $42 million, according to reports by the NCUA's Office of Inspector General.
Former board members and staff at the liquidated New London Security Federal Credit Union are among those accused by five members of negligence in a lawsuit to recoup $4 million in losses.
Five members of the defunct New London Security Federal Credit Union have filed a lawsuit to recoup $4 million claiming board members, staff and the CU's accounting firm among others were negligent in supervising its financial adviser.
A natural tension exists between industry and regulators that can be healthy and helps keep both on their toes. But when a loss of respect occurs on either side, and currently on both sides, it becomes counterproductive.
Federal government employment shifting, rather than eliminating subpar employees, can have a strong impact on credit union regulation.