Friday, March 08, 2013

The "Missing" $2 Billion From The CLF....

"You betcha I
can explain all this..."
Mr. John Fairbanks, NCUA's "I-can-explain-everything!" spokesperson, held forth in the CUTimes (3/7/12) yesterday on the latest round of "Pass The Cash" over at the Agency. This time around it would appear that NCUA has "laundromatted" $2 billion of CLF funding held at US Central on behalf of credit unions - or at least so claims Chip Filson. 

"Really, I-can-explain-all-this...."
Mr. Fairbanks has stepped in for "the spin cycle" and to provide distance from the muck and "plausible deniability" for the muckety-mucks. Fairbanks' line of defense was to throw out a shell game of convoluted financial gobbledy-gook that would have made even Bernie Madoff blush.

But to clinch the deal, Mr. Fairbanks called up as irrefutable, financial management expertise NCUA's Asset and Management and Assistance Center (AMAC), which disposes of all the problem assets the Agency aquires.  AMAC handled the liquidation - end of story, all's right with the world.

Except for this little problem...
Crowe  Horwath LLP (Crowe) completed a performance audit of AMAC in March, 2012 which had the usual laundry list of missing policies and unfollowed controls (would have resulted in multiple DOR's and a CAMEL Code 4 for an FICU, a Code 5 and removal of the board for an FISCU !) But in the "independent agency world" of NCUA it's " a close enough, no one's watching us anyway  clean opinion".  A "clean opinion" despite that nagging little, glaring piece about:  "However we determined MATERIAL WEAKNESSES EXIST related to REO activities. " (Check out in the NCUA OIG report if it has not now been redacted.)

There increasingly seem to be many "material weaknesses" in NCUA's explanations .... but there is a solution ! 

Would suggest that the Agency hire, on a contingency fee basis, a politically powerful, outside law firm to sue the NCUA....

.... or is that a conflict of interest, or does that matter any more ?

  Have you signed the petition?

1 comment:

Anonymous said...

The AMAC has financial expertise? Compaired to what? The Keystone Cops!