Wednesday, November 25, 2015

NY Times: CU Start-Up Frustrated with Bureaucracy

The New York Times reported on the problem one credit union start-up had with the National Credit Union Administration (NCUA).

The credit union -- Internet Archive Federal Credit Union (New Brunswick, NJ) -- opened its door in 2012.

Credit union officials stated that they were frustrated by "a barrage of regulatory audits and limitations on its operations."

However, the article pointed out that this de novo credit union sought on several occasions to alter its business plans, including serving Bitcoin companies and providing international remittances for immigrant workers.

In my opinion, these changes in business plans at this start-up raised red flags with regulators and warranted increased oversight.

Read the story.
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