A verbal attack by the Washington Credit Union League on Pacific Investment Management Co., the California consulting firm, for an alleged conflict of interest and insider role in connection with the failed US Central FCU and WesCorp FCU, continues to "draw industry support," the head of the league said Tuesday.
For one thing, it has shed new light on transparency concerns and has moved along NCUA's process of finding equitable solutions on corporate stabilization, said John Annaloro, president/CEO of the trade group which last week called on the Newport Beach, Calif. firm to return fees it received for its NCUA evaluation and be barred from future agency assignments.
I think the leadership of NCUA has taken to heart the responses it got on this issue and is weighing the moral hazard," said Annaloro in referring to its complaint on quoted suggestions by a top PIMCO executive of a possible bid on the so-called "toxic assets" of US Central/WesCorp after the firm served as an NCUA analyst and adviser.
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NCUA has dismissed the PIMCO criticism as uninformed maintaining the firm's report was just one element of its US Central/WesCorp decision-making.
"I'd say our criticism of PIMCO was very well received by the industry," said Annaloro with league officials noting the scores of e-mails and phone calls from CUs, mostly in Washington.
Annaloro said he has not received any comment from PIMCO. Calls by Credit Union Times to PIMCO's offices in Newport Beach and New York where it also has offices were not returned.
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