The management and board of Telesis Community Credit Union, aswell as the NCUA and California Department of FinancialInstitutions, are responsible for the credit union's failure,according to a Material Loss Review released this week by theNCUA's Office of Inspector General.

The OIG concluded that the $318 million credit union's leadersdeserve most of the blame for investing too heavily into memberbusiness loans, failing to properly calculate loan loss allowances,depending too much upon its business lending CUSO for revenue, andspending too much on operating expenses.

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