We all make tough business decisions where there is no black and white, only shades of gray. A credit union loan officer might struggle with whether to approve a loan on D paper. Or the NCUA might struggle to make the right decisions based on information that it is often bound not to divulge while taking heat from the industry.

The NCUA, despite an ongoing court case regarding the matter, liquidated Kappa Alpha Psi Federal Credit Union (See page 1). According to the NCUA's spokesman, the credit union was unwilling to support a transfer of shares. Yet Kappa Alpha Psi and Hope Community confirmed that the two were in merger talks. Possibly the credit unions could not reach a deal, but how much of a risk is a credit union with assets of under $1 million for another week?

KAP FCU absolutely had its issues, not the least of which was its nearly 25% delinquency ratio and negative capital. The NCUA also made public at least one letter of understanding and agreement with the credit union. But the agency made the decision to blow past conservatorship straight to liquidation. How quickly did the agency have to move to a resolution because the NCUSIF had to cover member deposits whether last week or next?