Tuesday, May 22, 2012

Montgomery County Teachers FCU Issued A Cease and Desist Order

The National Credit Union Administration (NCUA) has issued an order to cease and desist to Montgomery County Teachers Federal Credit Union (MCT FCU)of Derwood, Md.

The consent order requires the credit union to finalize its merger with Educational Systems FCU in leiu of producing a net worth restoration plan. MCT FCU was undercapitalized with a net worth ratio of 4.35 percent.

The order requires MCT FCU to cooperate with Educational Systems during the due diligence process and to give Educational Systems full access to its records.

The credit union was told to cease and desist all actions that could be considered an alternative to a merger.

MCT FCU is to refrain from imposing unreasonable conditions and restrictions in the merger agreement including hiring MCT FCU's employees, placing directors on Educational Systems' board, and limiting changes to member services.

Also, MCT FCU is to ensure the financial statement audit is completed and all accounts are reconciled by May 31, 2012; and it addresses operational deficiencies and strengthen internal controls.

Read the order.
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2 comments:

  1. AnonymousMay 25, 2012 at 11:00 AM

    Good old Thom Beck being the jerk that he is. He can't help himself. Must keep the deck chairs straight even though the Titanic is doing down.

    ReplyDelete
  2. AnonymousJune 6, 2012 at 8:05 AM

    The CEO Thom Beck destroyed what was a great credit union. It is now his time to be held accountable.

    ReplyDelete

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