NCUA Director of Congressional and Public Affairs John McKechnie said the agency's decision to place Arrowhead Central Credit Union executives on paid leave, rather than dismiss them, is not unusual, particularly while the NCUA is reviewing operations.
"The NCUA is focusing on maintaining stability and uninterrupted service to members, and protecting member assets, all of which may be enhanced by the retention of certain employees," McKechnie said.
The $876 million, federally-insured and state chartered Arrowhead was placed into conservatorship Friday afternoon. The San Bernardino-based credit union had been significantly undercapitalized since Sept. 2009, with 3.36% net worth as of March 31, 2010.
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