NAFCU President Fred Becker said he's firing off another letter to the NCUA, accusing the agency of inconsistent reporting in its refusal to release specifics regarding corporate losses and the state of U.S. Central Federal Credit Union and Western Corporate Federal Credit Union investment portfolios.
Becker said the NCUA disclosed corporate-owned securities impairments in official letters to credit unions dated June 2008 and January 2009. Indeed, the NCUA reported last June that 98% of corporate securities were investment grade; however, the January letter reported that number had slipped to 80%.
"We don't understand why the NCUA can report this information in June 2008 and January 2009, but not now," Becker said.
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The NCUA has said it won't release its corporate loss estimates or methodology, due to contractual obligations to third party vendors, and an obligation to keep U.S. Central and WesCorp matters private following both corporates' March 20 conservatorships.
"I think agencies tend to hold their cards very close to their vest," Becker said, "But in this case, they're being very inconsistent. They owed [corporates] a certain level of privacy before, so if they could disclose the information then, they should disclose it now."
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