The NCUA told North Carolina's state-chartered credit unions on Friday that it has completed its dual examinations that followed State Employees' Credit Union's publication of its CAMEL score.
NCUA Executive Director David Marquis wrote that while the agency regretted any inconvenience to credit unions, the separate exams were needed because the North Carolina regulator authorized a federally insured credit union to violate an NCUA regulation and the Share Insurance Agreement.
This action “naturally resulted in a loss of trust. The fact that the North Carolina regulator took this unprecedented action without any prior discussion with NCUA made it even more disturbing,'' Marquis said in the letter obtained by Credit Union Times.
He reiterated the agency's position that the North Carolina regulator could end the dispute by taking two actions: Withdrawing permission of any federally insured credit union to publicize its CAMEL rating or any other part of an exam report; End the “beta test pilot program” which authorized State Employees' Credit Union to post one of its CAMEL ratings on its website, and ensure that the credit union removes the rating from any public view.
Marquis said he also had made the request of Jerrie Jay, administrator of North Carolina's Credit Union Division during a meeting on Dec. 5 in Raleigh.
Jay disputed that account and told Credit Union Times that at the December meeting Marquis didn't specify what actions he wanted her agency to take. “I tape recorded the meeting, with the NCUA's knowledge, and they didn't make a request then. I asked them to put any requests to me in writing and I never received a letter,” she said.
Meanwhile, SECU President/CEO Jim Blaine said Friday that he had no direct communication with federal regulators about the issue since he revealed the rating last fall. His Raleigh, N.C.-based credit union has assets of $23 billion.
In an email to Credit Union Times, Blaine said, “Honestly, some dialogue would have been better than Mr. [Region III Director Herbert] Yolles standing in the middle of North Carolina and setting his underpants on fire!”
The NCUA said Yolles and its general counsel, Michael McKenna, also met with the North Carolina Credit Union League board to brief them on the matter last week. Some credit union leaders called for NCUA Board Chair Debbie Matz to visit the state to help settle the dispute.
Matz had said North Carolina regulators violated the federal agency's trust by approving the disclosure of the score.
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