National Credit Union Administration (NCUA) Activates National Examination Team

Source: http://www.ncua.gov/news/press_releases/2009/MA09-0108.htm

In short, this news means that there's going to be increasing credit unions failures. The dominos are falling in our debt based economy.


"January 8, 2008, Alexandria, Va. – Chairman Michael E. Fryzel announced today activation of the National Credit Union Administration (NCUA) National Examination Team (NET) to enhance the supervisory process in areas where economic conditions have adversely impacted federally insured credit unions. This initiative is in further response to the difficulties caused by declining home values, high mortgage delinquency rates, high foreclosure rates, high unemployment rates, and concentrations of real estate loans that have affected credit unions to varying degrees. Where those factors are present, NCUA will deploy a specialized team of examiners who will concentrate on the most difficult cases. “As first mentioned last October during our 2009 budget discussions, NCUA is now activating the NET,” said Chairman Fryzel. “The knowledge, skill, and experience of NET members will enable them to quickly identify complex problems, recommend appropriate corrective actions and thereby improve the overall quality of NCUA supervision during a very volatile period for all financial institutions, including credit unions. The NET is a logical and essential component of our overall NCUA's focus on strong and proactive regulation, and the priority we place on safety and soundness."NET will supervise assigned credit unions until problems are resolved, either returning the credit union to regional supervision or activating merger, conservatorship or closure. Additionally, the NET will be responsible for examining and supervising approximately ten credit unions, mainly large and more complex institutions. The NET also represents an opportunity to expose NCUA examiners to a broad range of credit unions and varying levels of risk, thereby augmenting NCUA’s succession planning objectives. The NET is comprised of a director, five problem case officers (PCOs) and the equivalent of one loss risk analysis officer (LRAO). In addition, regional subject matter examiners (SMEs) will be detailed to NET on an as needed basis.The National Credit Union Administration charters and supervises federal credit unions. NCUA, with the backing of the full faith and credit of the U.S. government, also operates and manages the National Credit Union Share Insurance Fund (NCUSIF), insuring the deposits of nearly 89 million account holders in all federal credit unions and the majority of state-chartered credit unions. NCUA is funded by credit unions, not federal tax dollars. "