Thursday, December 15, 2011

Number of Problem CUs Edged Higher in November, But Shares and Assets Down

The NCUA reported that the number of problem credit union increased by 5 during November to 399 – the most problem credit unions during the current credit cycle.

A problem credit union has a CAMEL rating of 4 or 5.

The shares (deposits) at problem credit unions fell by $2.4 billion to $28 billion and assets at problem credit unions declined by $2.7 billion to $ $31.2 billion during the month. The decline in shares and assets at problem credit unions can mainly be attributed to a single billion-dollar plus credit union no longer being on the problem credit union list.

NCUA noted that 3.58 percent of all insured shares and 3.1 percent of the industry’s assets are in problem credit unions.

Almost 85 percent of all problem credit union have less than $100 million in assets, while 3 percent of the problem credit unions are larger than $500 million.

NCUA also announced that it will discontinue its monthly update on the status of the insurance fund and will return to a quarterly presentations.

1 comment:

  1. The only way the NCUA can justify there useless, worthless existence is to grow the numbers they consider to be problem at risk credit unions. In fact the problem these at risk credit unions all share is their problem NCUA regulator. Look at all of the corporate credit union failures including WesCorp, USCentral, Members United, etc. The NCUA had examiners on location full time and these huge corporates still went kaput. Even under the watchful examiner eye of the NCUA they failed. Now the NCUA has dropped the hammer on those credit unions still standing. The NCUA has downgraded them. Now they can justify their miserable existence before Congress as they report the growing number of problem at risk credit unions. Keith, do you see where this is going? Who regulates the rogue regulator? And the NCUA gets more budget funding based on the Number of Code 3, 4, and 5 credit unions. The rationale being they require more regulator time and expense thus more funding. The more problem credit unions the bigger the NCUA budget. It is a utterly worthless self-perpetuating civil service government agency.



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