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Inspector General Blames Management, Board, Regulators for Telesis Failure

New report cites CEO's aggressiveness and risk-taking, compliant board, lax oversight in California credit union failure.

By Heather Anderson | Updated on March 21, 2013

The management and board of Telesis Community Credit Union, as well as the NCUA and California Department of Financial Institutions, are responsible for the credit union’s failure, according to a Material Loss Review released this week by the NCUA’s Office of Inspector General.

The OIG concluded that the $318 million credit union’s leaders deserve most of the blame for investing too heavily into member business loans, failing to properly calculate loan loss allowances, depending too much upon its business lending CUSO for revenue, and spending too much on operating expenses.

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