Greater Norwalk Area CU (Norwalk, CT) has entered into a consent order with the Connecticut Department of Banking on July 26 for engaging in unsafe and unsound practices.
The order specifies numerous corrective actions that the credit union should undertake.
The consent order states that the credit union will retain qualified management.
The credit union will immediately establish a supervisory committee that meets the requirements specified by law and the supervisory committee is expected to meet at least quarterly while this enforcement action is in effect.
The credit union shall develop a plan to reduce the level of delinquent loans and eliminate from its books, by charge-off or collection, all assets or portions of assets classified “Loss” that have not been previously collected or charged off.
The credit union will put in place a net worth restoration plan that will return the net worth ratio to 7 percent and keep the net worth ratio above 7 percent thereafter.
The consent order also noted that the Board would ensure all credit union employees and Board members underwent Bank Secrecy Act (BSA) training and that a comprehensive and independent review of the BSA program will be conducted.
Read the consent order.
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