The Credit Union Times is reporting that AEA Federal Credit Union of Yuma, Arizona is looking to make a $10,000 charitable contribution to one of three community organizations.
Normally, this story would not be newsworthy, except the credit union is under NCUA conservatorship and is the recipient of $20 million in Section 208 Net Worth assistance. If it was not for this net worth assistance from the NCUSIF, the credit union would be insolvent. Even with the net worth assistance, the credit union is significantly undercapitalized, according to its September 2012 call report.
Let me get this straight. The Village Idiots at the NCUA provide a $20M assistance "loan" to the Texans CU. The Texans CU makes a $10,000 charitable contribution to some worthy cause. None of this should surprise us. The Texans CU was mismanaged and continues to be mismanaged. And with NCUA's $20M assistance they will continue to be mismanaged. So actually none of this should come as a surprise to those of us paying for it - those still standing in the credit union community. Another waste of credit union assessments.
ReplyDeleteYou have the right idea but the wrong CU - Leggett's talking about AEA. And it's worse than a $20M loan, my understanding is that NCUA wrote off $10M of the loan when they made it. So maybe AEA is working on giving away the $10M they don't intend to repay in $10K increments.
DeleteMaybe, as with the unilateral move to designate hundreds more credit unions as low income, this is a new type of MBL!
ReplyDeleteNo cap!
Just ask for 208!
With no accountability, it's party time!