According to the Material Loss Review, the failure of G.I.C. resulted in an estimated loss of $7 million to the National Credit Union Share Insurance Fund.
The IG report found that the credit union overstated its assets by $8.1 million, primarily through the misstatement of certificates of deposit held as investments and cash held on deposit.
The report noted that several factors contributed to the fraud going undetected, including
- senior management displaying a lack of integrity and not managing the credit union in the best interest of its members;
- supervisory committee failing to obtain supervisory committee audits for three consecutive fiscal years; and
- the Board of Directors of the credit union failing to exercise its responsibilities.
Read the Material Loss Review.
A while back we recall hump-el at cuna (cu not accountable) saying losses in the system from the credit bubble wont be as bad on a relative basis in part because losses proor to the bubble were mostly from fraud and therefore more expensive to resolve.
ReplyDeleteGIC is one of perhaps 6 (or more) where mgt absconded more than the assets of the cu.
cuna. Waste of dues money.
Hump/el. Robusteerian economist (as in written by an idiot).