A recent article in CU Times addressed the failure of Taupa Lithuanian Credit Union and the report issued by the NCUA Inspector General (IG). It keyed on the examination process, what the IG said could have been done better, and how the NCUA responded to the findings.

Financial regulators are and should be very cognizant of the fact that when an institution over which they have regulatory authority fails; they bear the burden of responding to why such an event occurred. In addition, they are mandated to put in place the steps necessary to correct any missteps on their part that contributed to the failure.

The CU Times article contains quotes from a high-level NCUA employee who when asked what action has been taken to prevent another Taupa, stated that steps have been taken but would not get into specifics, saying, “It’s part of the exam process and we really don’t discuss that in detail.” This response is somewhat concerning, since the report on the failure issued by the IG is specific on areas where the NCUA could have done a better job.

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Michael Fryzel


Credit Union Times

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