Mica Says CUs Have Lost Confidence in NCUA

3/26/2009

Credit unions “have lost confidence and trust in their regulator” as a result of NCUA’s unwillingness to disclose data that led to the decision to place U.S. Central Federal Corporate Credit Union and Western Federal Corporate Credit Union into conservatorship, CUNA President Dan Mica wrote NCUA Chairman Michael E. Fryzel, last night.

Mica said that every credit union that has weighed in has “expressed concern, outrage, anger and frustration at the current situation.” (CU Times)

Credit unions “have lost confidence and trust in their regulator” as a result of NCUA’s unwillingness to disclose data that led to the decision to place U.S. Central Federal Corporate Credit Union and Western Federal Corporate Credit Union into conversatorship, CUNA President Dan Mica wrote NCUA Chairman Michael E. Fryzel, last night.

Mica said that every credit union that has weighed in has “expressed concern, outrage, anger and frustration at the current situation.”

He requested that NCUA provide additional information on the analysis of corporate credit union assets by PIMCO by the end of Friday.

He said NCUA’s board had instructed him to take all necessary action to get the information “including Congressional hearings, direct contact with the administration, and up to including all possible legal remedies."

NCUA Director of Public and Legislative Affairs John McKechnie said “details of the PIMCO engagement, such as PIMCO's methodology and other confidential, proprietary information, are not public."

Becker’s and Mica’s letters came on the eve of today’s closed NCUA Board meeting at which will members will consider ways to fund the additional costs to the NCUSIF stemming from the conservatorship of U.S. Central and Wescorp.

CUNA also said that its grass roots effort to urge NCUA board members to spread out the period during which the NCUSIF must be replenished has generated 10,000 emails to the agency as of 10:30 a.m. today.

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