NCUA Director of Congressional and Public Affairs John McKechnie dropped a bombshell in response to criticism that the agency acted too swiftly in its June 25 conservatorship of the $876 million Arrowhead Credit Union: Arrowhead fudged its March numbers.

NCUA Spokesman John McKechnie said Dave Shelter, deputy director for the Office of Corporate Credit Unions, was only speaking hypothetically when he described how the agency would liquidate U.S. Central FCU and Western Corporate FCU.

NCUA Deputy Executive Director Larry Fazio provided a few more clues yesterday regarding progress toward separating so-called legacy assets from corporate credit union balance sheets.

The NCUA today posted online the second of three video presentations that aim to help credit unions and their volunteers better understand corporate stabilization measures.

The NCUA plans to release an official letter to credit unions next week that will outline how they can merge with struggling credit unions.

The NCUA's corporate legacy asset plan may not be made public until September, Chair Debbie Matz told a Town Hall webcast audience of 1,100. The event began at 3 p.m. Eastern Time and is expected to run 90 minutes.

NCUA Director of Congressional and Public Affairs John McKechnie said the agency's decision to place Arrowhead Central Credit Union executives on paid leave, rather than dismiss them, is not unusual, particularly while the NCUA is reviewing operations.

Doug Thompson, CEO of the $82 million Aberdeen FCU, said the question of whether or not to recapitalize corporates mirrors a question facing the entire credit union movement: cooperate more or less?