That is the estimated loss to the National Credit Union Share Insurance Fund as of November 2012 from the failure of Telesis Community Credit Union in Chatsworth, California.
The NCUA is hoping the Telesis story will go away, but Telesis should be the poster child for earnings claw-back. The top two executives there both cashed out large retirement accounts amazingly close to the time the credit union was conserved. Were they trying to take the money and run before the NCUA gained control? Of course they were. Despite the egregious mismanagement of Telesis, the grossly negligent actions of senior management and the board of directors, and the continued losses experienced by the NCUSIF, the NCUA is still sitting on their hands.
Keith - You did not do CEO Grace Mayo justice. Just look at the Call Report facts: 12-2007 NEGATIVE INCOME $7,692,857 12-2008 NEGATIVE INCOME $13,521,550 12-2009 NEGATIVE INCOME $10,973,476 12-2010 NEGATIVE INCOME $11,220,787 06-2011 NEGATIVE INCOME $395,220 12-2007 NET WORTH WAS $65MILLION 6-2011 NET WORTH WAS $22MILLION THE 990 IRS REPORT SHOWS GRACE'S INCOME AT $436,542 12-2008. IT JUMPED TO $2.1MILLION 12-2010. The previous post is dead on - Where the heck is the NCUA claw-back?
The NCUA is hoping the Telesis story will go away, but Telesis should be the poster child for earnings claw-back. The top two executives there both cashed out large retirement accounts amazingly close to the time the credit union was conserved. Were they trying to take the money and run before the NCUA gained control? Of course they were. Despite the egregious mismanagement of Telesis, the grossly negligent actions of senior management and the board of directors, and the continued losses experienced by the NCUSIF, the NCUA is still sitting on their hands.
ReplyDeleteKeith - You did not do CEO Grace Mayo justice. Just look at the Call Report facts:
ReplyDelete12-2007 NEGATIVE INCOME $7,692,857
12-2008 NEGATIVE INCOME $13,521,550
12-2009 NEGATIVE INCOME $10,973,476
12-2010 NEGATIVE INCOME $11,220,787
06-2011 NEGATIVE INCOME $395,220
12-2007 NET WORTH WAS $65MILLION
6-2011 NET WORTH WAS $22MILLION
THE 990 IRS REPORT SHOWS GRACE'S INCOME AT $436,542 12-2008. IT JUMPED TO $2.1MILLION 12-2010.
The previous post is dead on - Where the heck is the NCUA claw-back?