Tuesday, May 24, 2016

Net Recoveries from Corporate CU Lawsuits -- Who Knows?

National Credit Union Administration (NCUA) has boasted in press releases that its gross recoveries from settlements associated with its corporate credit union lawsuits are $3.1 billion.

However, the agency has failed to disclose its net recoveries from these lawsuits.

Publishing information about net recoveries would enable the public to estimate how much NCUA has paid in contingency fees to outside law firms with respect to its litigation over the failure of five corporate credit unions.

On April 8, I filed a Freedom of Information Act request regarding the agency's net recoveries associated with its litigation over the failure of five corporate credit unions.

On May 20th, NCUA denied my request.


  1. Office of general counsel/NCUA to the Executive Branch on contingency lawsuits- "don't make me laugh".
    NCUA to Congress on low income designation- "don't make me laugh".
    NCUA to Congress on RBC- "you're hilarious".
    NCUA to Congress on charter change rules-"ha ha ha, watch this!"
    METSGER/NCUA on FOM, MBL, Supplemental Capital-"congress is useless, I will deliver the goods!"
    A rogue and unaccountable federal agency in the mold of obama's IRS...er, maybe this is where IRS went to school!

  2. Another piece of the settlement equation that I have not seen answered -- they have settled for 3.1 billion in the cases so far, but how much were they seeking? Did they get 90%? 10%? Etc.

  3. What reason did they give for denying your FOIA?

    1. NCUA cited two exemptions for denying my request from 5 U.S.C. Section 552.

      "(4) trade secrets and commercial or financial information obtained from a person and privileged or confidential;

      (5) inter-agency or intra-agency memorandums or letters which would not be available by law to a party other than an agency in litigation with the agency."

    2. That's a load.
      The GC struck a deal w a friend at a law firm.
      When the judge yesterday said the lawsuits weren't legal, does that affect these contingency settlements?
      NCUA to executive branch and congress on no contingency settlements for gvt lawsuits-- ha ha, we did it anyway.
      Now, if there is a clawback, they should clawback on fenners cushy pension.

    3. I appreciate your efforts. It seems to be that if a government agency is able to decide that certain provisions of statutes don't apply to them (in this case contingency agreements in lawsuits) then they shouldn't be able to hide the details of their actions behind FOIA statutes.

      Trade associations - where are you?

    4. Where are the trade associations?
      Good question for sure.
      Someone told me that bill robusterian Hampel told credit unions that the CCU problem would be only 10 bps and this was 2 months before usc and wescorp were taken over by NCUA.
      Well it was a WHOLE lot more than 10 bps.
      He then sent a bunch of "white papers" out discussing how manageable the losses would be.
      Now he is saying there is no "immediate" cause for concern.
      Nafcu is extremely loud with their silence since they seem to have a policy that they will write a letter every time someone burps at the agency.
      What are credit unions getting for their fees paid?
      Glad we disaffiliated.

  4. Keith,

    I disagree with a lot of the positions you take on this site, but thanks for what you're trying to do here to hold the NCUA accountable.

    Credit unions and the trade associations that supposedly "serve" them need to be beating this drum as loudly as you are.



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