Monday, June 25, 2012

Just A Little Off The Top Please ...

Well, looks like we're about through with the legal grandstanding by NCUA which has been suing everyone in sight over the failure of five large corporate credit unions (all of which were - just for the record - federally chartered). 

First sued were the corporate executives, then the corporate board members, followed by a few random potshots at various brokerages and investment houses.  Most of the lawsuits have come to naught, other than some token, "just go away" chump change coughed-up by Wall Street.

Even though NCUA has used its "NCUA Breathless Express" ("breathless"in the same sense that Mastercard is "Priceless") to regularly herald a flurry of "prohibitions" against a few former corporate credit union executives; the many case dismissals and the very obvious absence of any "perp walks" is embarrassingly clear. 'Course all these lawsuits end with "sealed settlements", which in the absence of any "perp walks" - affirming illegality, serve to primarily protect the negligence of.... that's right... "you know who"! 

Another "cover up"...
A couple of May 18, 2012 "cease and desist" orders "breathlessly expressed" by NCUA against former corporate credit union leaders Francis Lee and Joe Herbst reveal the sinister underbelly of NCUA in these abusively cynical, bullying lawsuits.  These two "settlements" prohibit these two gentlemen from ever working again in a corporate credit union, but not from working in a natural person credit union.  In other words, these two men were not guilty... period.  But, you can be sure that the "CYA" lawsuits by NCUA cost these two folks dearly in terms of attorney fees, reputation, family and emotional costs.  

Two very clear examples of the retaliation, intimidation, and victimization being perpetrated by a government Agency funded by you.  Do you endorse this?  Do you support this?  Well, you do - as long as you continue to remain silent and docile - like it or not!!

Unfortunately with the "corporate disaster", NCUA has looked everywhere for the guilty except in one place...

Mirror, Mirror.....
And, in keeping with NCUA's approach to settlement in these cases; it would now seem appropriate to issue "cease and desist" orders against several ("You know who you are!!") senior level NCUA officials concerning their actions - or, more precisely, lack there of - in connection with the demise of those five, large, federally chartered corporate credit unions.  

Isn't it time that "someone" at NCUA did the honorable thing and took responsibility for these failures? (It's called leadership everywhere else.)

Again in fairness and to maintain balance with the orders issued to the two corporate execs, these NCUA officials do not need to admit nor deny guilt, the record will be sealed, and they are not prohibited from working at any credit union not insured by the NCUA.  And, quite sure the FDIC, also, would welcome them with open arms given their long experience and the track record they have created at NCUA.

Let's all be reasonable about this!  Because if we're not going to have a civil resolution to this matter, then only one other course seems to remain....
Senior basket cases?

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