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.

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

  • Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including Law.com and GlobeSt.com.

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.