Another Trumped Up Federal Case ...

Fred Becker is one of the most intelligent, savvy, and experienced leaders in the Credit Union movement.  Fred's been the leader over at the National Association of Federal Credit Unions (NAFCU) in Washington, DC for over a decade - clearly shrewd, a survivor!


Fred recently wrote the NCUA (read his letter here.) to complain about the high risk that state-chartered CU investment authority posed to the National Share Insurance Fund (NCUSIF).  While Mr. Becker certainly has the right to point out problems that don't appear to exist; it might be helpful for a few indisputable facts to be included with the letter, to help give balance as to where the actual problem and risks just might lie.


For example:  The greatest investment losses ( last guess $15 billion!) ever incurred by credit unions were at:

• Western Corporate Federal CU
• US Central Federal CU
• Southwest Federal CU
• Members United Federal CU
• Constitution Federal CU

               ..... and this is the second time around on the corporates; the previous most expensive blow-up and major financial loss was with Capital Corporate Federal CU.


Another example:  Fourteen of the top fifteen critically undercapitalized CUs currently reported by NCUA are Federal credit unions.


Last example:  The only failed natural person credit union that the NCUA Office of the Inspector General (OIG) listed in its last (Sept 2010) semi-annual report as under review for causing a loss greater than $25 million to the NCUSIF was  St. Paul Croatian Federal Credit Union.


Not real sure why the States should be looking to NCUA for wisdom and guidance on prudential investment authority right now.....


Most of us long term admirers of Fred Becker have always hoped that with all that talent; with all that experience; with all that rigorous, disciplined military training; that Fred would eventually rise well above the level of "Division commander"...... still waiting!