If NCUA and state examiners had been more aggressive in their oversight of 10 failed credit unions, losses to the NCUSIF could have been stopped or mitigated, according to a report by the NCUA's Office of Inspector General.
The report, which analyzed and summarized the agency's earlier material loss reviews of 10 natural person credit union failures, also concluded that the actions of management at each of the credit unions contributed to the failures.
Poor strategic planning and decision making and inadequate oversight were in evidence in many of the credit unions, according to the report. One failure–Center Valley FCU–was caused by fraud. Two failures, New London Security CU and St. Paul Croatian FCU, were alleged frauds.
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