Wednesday, December 26, 2012

Barred from Corporate CUs; But Not Retail CUs

I was reviewing NCUA's administrative orders associated with the personnel at the two costliest credit union failures -- Western Corporate FCU and U.S. Central FCU.

The orders with one exception had the same language barring the individual from:
  • becoming an employee, holding any office in, or otherwise participating in any manner in the conduct of the affairs of any federally-insured corporate credit unions;
  • consulting or advising any federally-insured corporate credit unions on any matters involving or related to investment securities, investment policy, or invesment strategy; or
  • selling any investment securities ... to any federally insured corporate credit unions.
However, these prohibition orders with one execption did not bar these individuals from becoming an employee or participating in the affairs of a natural person or retail credit union.

If these individuals are not qualified to work for or to participate in the affairs of federally-insured corporate credit unions, then how are these individuals qualified to participate in the affairs of or work for a natural person credit union?

And I am not the only person asking this question.

I was carbon copied along with The Wall Street Journal and The Washington Post on a letter to the NCUA Board that raised the same question.


  1. It doesn't make any sense. "You're too dangerous/reckless/risky to work in a corporate, but it's okay for you to work in a natural person CU." I'm sure the CFPB wouldn't be happy to learn that NCUA is basically saying it's more important to protect credit unions than consumers.

  2. See it slightly different.
    Keep enemies close.
    Same reason they didn't fire buckham for the thorough bungling of corp cu supervision.
    Can't have them out there telling the truth!

  3. CUNA CEO Bill Cheney - former WesCorpFCU Director.
    CCUL CEO Diane Dykestra - former WesCorp FCU Director.
    California Coast CU CFO Todd Lane - former CFO at WesCorp.
    Our National trade association (CUNA) & the California credit union trade association (CCUL)President & CEO are the same folks holding positions of fiduciary responsibility at WesCorp FCU. Bill Cheney was also on the USCentral Corporate Board of Directors. Now these folks are representing the credit union industry before our federal regulator the NCUA. Both Bill & Diane should be prohibited and barred from the credit union industry. Instead they are leading it. I say take away their credit union membership and off with their heads. Tell us Bill & Diane exactly how much have you cost the credit union industry with your astute business judgment fiduciary decision making while serving us in your elected positions on the WesCorp FCU and USCentral Board of Directors?

    1. You are right on these people.

      they should never be allowed work in Their current jobs.

      Former credit union business lender

  4. You can't ,ake this stuff up.
    We need a wall street journal expose.



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