NCUA Goes Rogue

On April 30, 2013, NCUA denied my FOIA request for the Letter of Understanding and Agreement (LUA) between the agency and failed Telesis Community Credit Union from June 2010 and May 2011. The denial letter from NCUA is posted below (click on image to enlarge).

However, this FOIA denial shows how NCUA seems to flaunt the rule of law. The Financial Institutions Reform, Recovery, and Enforcement Act of 1989 modified the Federal Credit Union Act requiring the disclosure of enforcement actions. But NCUA is using the FOIA exemptions to keep from releasing this information.

Section 206(s)(1) of the Federal Credit Union Act states the following:

(s) Public Disclosure of Agency Action.—
(1) In general.—The Board shall publish and make available to the public on a monthly basis—
(A) Any written agreement or other written statement for which a violation may be enforced by the Board, unless the Board, in its discretion, determines that publication would be contrary to the public interest;
(B) any final order issued with respect to any administrative enforcement proceeding initiated by the Board under this
section or any other law; and
(C) any modification to or termination of any order or agreement made public pursuant to this paragraph.

Paragraph (s)(5) of Section 206 states that the publication of the order can be delayed for a reasonable time under exceptional circumstances.

Delay of publication under exceptional circumstances.—If the Board makes a determination in writing that the publication of a final order pursuant to paragraph (1)(B) would seriously threaten the safety and soundness of an insured depository institution, the agency may delay the publication of the document for a reasonable time.

I can't see how releasing the two LUAs would constitute a serious threat to the safety and soundness of Telesis Community CU, because the credit union has already failed.

Moreover, this rogue agency rarely discloses any enforcement action in a reasonable time.