The NCUA Office of Inspector General has determined that the agency's regional director did not make false statements about the nation's second largest credit union in a dispute best known for resulting in the NCUA imposing dual examinations on state-chartered North Carolina credit unions.

The OIG's ruling in favor of Herbert Yolles, Region 3 director, came after an investigation requested by Jim Blaine, president/CEO of the $24 billion State Employees' Credit Union of Raleigh.

Blaine last fall publicly released his credit union's CAMEL rating, kicking off the public part of the fray between the two regulators and the state-chartered credit unions. The NCUA said Blaine's move, made with the approval of state regulators, threatened the safety of the NCUSIF and violated the federal agency's trust in its North Carolina counterparts.