Regulators are often the center of attention for the regulated, but lately the NCUA has taken the spotlight. Unfortunately for the agency, it's been low-hanging fruit.
The NCUA recently conserved two credit unions (and possibly more by the date of this publication): Texans Credit Union and Vensure Federal Credit Union. Both under very different circumstances, yet the common mantra from the NCUA was that it did its job to the best of its authority.
True, a few credit unions will fail due to fraud and other circumstances that even acute scrutiny could not detect. But fraud wasn't the situation at these credit unions. (Though it did end up being the scenario at St. Paul's Croatian where the agency failed to notice the credit union hadn't claimed a single default on its loans for all of 2009 and even before. The NCUA IG cited faulty examination at the credit union that is expected to cost the NCUSIF $170 million.)
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