San Diego Metropolitan Credit Union (San Diego, CA) and Eagle Credit Union (Lodi, CA) have entered into consent agreements with the California Department of Business Oversight.
The consent order against San Diego Metropolitan Credit Union requires the credit union to retain management and a Board of Directors acceptable to the Commissioner. In addition, the order requires San Diego County Metropolitan Credit Union to develop, adopt and implement a plan to materially reduce the risk in its Troubled Debt Restructures (TDR) portfolio and to fully document and support that the member has the ability to repay on future TDRs. San Diego Metropolitan Credit Union is also expected to develop and implement a plan to reduce its interest rate risk within 60 days of the date of the Order, including lowering its exposure to mortgage related loans and investments to no more than 600 percent of net worth by the end of 2014 and 500 percent of net worth by the end of 2015.
Read San Diego Metropolitan Credit Union's consent order.
The consent order against Eagle Credit Union requires the credit union to retain management and a Board of Directors acceptable to the Commissioner. Eagle Credit Union will take corrective actions to address all accounting and internal control deficiencies identified in the examinations dated December 31, 2013 and June 30, 2013 and the CPA audit as of September 30, 2013. The credit union is also expected to develop a reconciliation matrix to assure adequate oversight and adherence to the general ledger account reconciliation policy and procedures. Furthermore, Eagle Credit Union will develop, adopt, and submit a revised strategic plan and budget, documenting specific actions to be taken, the assumptions made, and the timeframes necessary to achieve positive earnings and net worth trends by year-end 2014. This order replaces an earlier enforcement order from February 6, 2012.
Read Eagle Credit Union's consent order.
Why the hell should the CA DBO care about any of this crap? If these credit unions fall into conservatorship the DBO loses nothing. The NCUA/NCUShare Insurance Fund is on the hook for insured deposits. These credit unions meanwhile continue to pay the 9.0% CA sales tax. Maybe the NCUA should be concerned because they have some insured deposit insurance exposure. But again the CA DBO has no insurance fund and thus no losses even if they should, unlikely, fail. Me think the CA DBO has misplaced priorities.
ReplyDeleteso, the supervisor shouldnt supervise?
ReplyDeletethe pitcher shouldnt pitch?
the hitter shouldnt swing?
the policeman shouldnt police.
you must be a congressman beecause they DONT DO WHAT THEYRE SUPPOSED TO DO.