According to the financial notes, Other Investments consisted of $184.7 million in commercial loans with maturies through December 31, 2017.
When I inquired with NCUA as to why the Other Investments were not part of Receivables from the Asset Management Estates, I was told by NCUA spokesperson John Fairbanks:
"[T]he NCUSIF purchased these loans in August 2012. They are wholly owned loans of the NCUSIF, held as an investment.
I cannot comment further as the purchase is part of the ongoing supervision of an operating CU."
This does raise some interesting questions:
Was this purchase of $184.7 million in commercial loans from one of the credit unions under NCUA conservatorsip?
Does this transaction represent a form of Section 208 assistance to a troubled credit union?
Review the August NCUSIF Financial Statement.
The agency already has credit unions' assets on its books as equity, loans to troubled credit unions as assets, and now it adds more assets; loans from (presumably troubled) credit union(s) as investments? It's definitely not smart, but is it even legal?
ReplyDeleteThis shell game is running out of shells to hide all the bad assets. Makes me love how Cuna (cu not accountable) and NCUA boast of all the capital and how fsoc bought that crap.
ReplyDeleteCu to Issa- figure it out yet?
It's a house of cards, busting at the seams with toxic assets and in hoc to the treasury and taxpayer.
For those of us not guilty and healthy, Issa, "set us free".
Congress, do your job.
Credit unions. We're not all gonna die. Just most of us.
ReplyDeleteKeith - Take a look at Telesis Credit Union. The CA CU was placed into conservatorship in March,2012. The NCUA folded Telesis CU into Premier America CU quite recently. Premier America CU did not take the Telesis CU toxic waste. NCUA owns the Telesis CU toxic waste. The toxic waste was the huge portfolio of Telesis CU member business loans gone bad. Interestingly, Telesis CU CEO Grace Mayo cashed in her $2M SERP before the NUCA placed them into conservatorship. Where the heck is the NCUA OIG report on this criminality? Has the NCUA filed a lawsuit to clawback the $2M CEO Grace Mayo payout? Appears the NCUA is too busy spending their 7.5% payraise. The 7.50% payraise exceeds the 1.90% Social Security and VA COLA (Cost Of Living Adjustment) for the same time period.
ReplyDeleteHow, in principle, is it different that fenner (the 3rd highest paid former gvt worker who fed contingeny lawsuit deals to a fellow former gvt worker), grace mayo, kent buckham (director of corp cu supervision), and the NCUA board are not in the news for milking the system while their story is essentially the same as big banks?
ReplyDeleteHuge losses. Big pay and payouts. No accountability.
Issa- get it yet?
Keep poking under the tent, there is a heap of fool's gold.
We who run good credit unions need some help from the outside. Our trade associations are compromised.