Callahan & Associates President Chip Filson suggested that interested parties should consider filing suit against NCUA for the conservatorship of U.S. Central Federal Credit Union and Western Corporate Federal Credit Union.
After raising serious questions during a Webinar yesterday afternoon about the NCUA's decision to place U.S. Central and WesCorp under conservatorship, Filson said the corporates' members and ousted board should consider challenging the agency's decision in court.
Among other allegations, the researcher questioned the NCUA's $8.9 billion credit loss estimate versus the $1.2 billion the two corporates had already reported to their boards-a 700% increase.
Recommended For You
Credit unions have the right to apply to U.S. District Court within 10 days of the conservatorship, he said, for an order requiring the NCUA Board to show cause for why it should continue possession and control of the corporate.
"This is the single most important statutory protection you have," Filson said. "Let's be clear. If nothing happens within the next 10 days, the NCUA has total, unrestricted, absolute power of your credit union and its assets, and it's not subject to any review by any party after that point in time."
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
