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.
That was the conclusion of the materials loss review by the accounting firm Crowe Horath at the request of the NCUA's Office of Inspector General.
U.S. Central's failure, which has so far cost the Temporary Corporate Credit Union Stabilization Fund $1.45 billion, was caused by the credit union management's failure to establish prudent concentration limits and its heavy reliance on ratings given to securities, according to the report.
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