One slide in the NCUSIF presentation at the March National Credit Union Administration (NCUA) Board meeting showed charges for assisted mergers of $39.5 million during the fourth quarter.
The following are questions to a NCUA spokesperson and the spokesperson's response.
Q: What type of assistance did NCUA offer during the fourth quarter?We will have to wait for the semi-annual report to Congress from the agency's Inspector General to see whether a material loss review is being conducted with respect to the NCUSIF assisted merger of Bay Ridge Federal Credit Union. The Brooklyn, New York-based credit union had significant exposure to taxi medallion loans.
Q: Was the charge associated with the merger of Bay Ridge FCU into Island FCU?
A: Slide five of the Q4 2018 Share Insurance Fund report shows the aggregate charges for assisted mergers was $39.6 million for the year and $39.5 million for the fourth quarter. The NCUA posts assisted mergers on its Conservatorships and Liquidations page, but the agency does not make public details of the type or level of assistance in an individual merger.
Q: Will the Office of the Inspector General do an audit on this assisted merger?
A: “The Dodd-Frank Wall Street Reform and Consumer Protection Act obligates the NCUA OIG to conduct material loss reviews (MLRs) of credit unions that incurred a loss of $25 million or more to the National Credit Union Share Insurance Fund. In addition, Dodd-Frank requires the OIG to review all losses under the $25 million threshold to assess whether an in-depth review is warranted due to unusual circumstances.”
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