I've obtained a copy of a NCUA letter (see below), not from the person that filed the complaint, that states this practice by Visions does not appear to comply with Part 716 of the Gramm-Leach-Bliley Act and the disclosure of this information in its newsletter appears to represent a violation of the confidentiality provision of the FCU Bylaws.
NCUA stated in its letter that "this is a regulatory compliance violation that will be addressed and corrected in the upcoming 2011 examination."
It seems to me that since this practice has been going on for some time (I wrote about this practice in a 2005 ABA Bankers News column), NCUA should hit Visions with a cease and desist order, which is published on NCUA's website, and a civil money penalty.
Click on images to enlarge.
Yes, a cease and desist. Yes a big fine. It is a big deal, and yes, you told us all about this since 2005.
ReplyDeleteIt is news almost on the order of this week’s discovery that since 2005 JP Morgan Bank was breaking US law by sending money via transaction intermediation with enemy or sanctioned nations, reported as contravening the US Weapons of Mass Destruction Proliferation Sanctions, doing it over the last six years while America is fully involved in multiple foreign wars, and in a manner the US Treasury officials called “egregious”.
Hundreds of millions may have been involved, yet JPM was fined a small, de minimis amount, somewhere on the order of 0.004% of assets. But wait, there was a minimum base fine for breaking these critical provisions of US law, and JPM got a fat 24% discount from the federal regulator. 24% off a non-material money penalty? A bunch off almost-nothing-to-JPM?
It could be argued the federal regulator broke the law by levying a money penalty less than what is actually required by United States rule or statute.
Those bank and credit union regulators must all be alike -- exercising judgment and flexibility. Let’s file lawsuits against them all. Yes.