Monday, May 9, 2016

Whe Doesn't NCUA Publish Bid Summaies for Failed CUs?

The National Credit Union Administration (NCUA) should start publishing the bid summaries for credit unions in receivership just like the Federal Deposit Insurance Corporation (FDIC) does for failed banks.

Since November 12, 2009, the FDIC has disclosed the results of bids for failed banks in FDIC receivership. The FDIC Board decided that disclosing this information was in the public interest and also met the Congressionally mandated objective that resolutions of failed banks are at the lowest cost.

For example, here is the bid summary for North Milwaukee State Bank (Milwaukee, WI). The summary discloses the name of the winning bidder and a summary of the winning bid. It also shows the other bids received and it lists the name of the other bidders. [Note: not all bank failures have multiple bidders].

Federally-insured credit unions should request that the NCUA Board begin disclosing summaries of bids for failed credit unions. Disclosing this information would provide more accountability and transparency with regard to the resolutions of failed credit unions by the NCUA.

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