During the week of July2, an analysis from Bill Hampel of the 2011 financial statement of the Temporary Corporate Credit Union Stabilization Fund (TCCUSF) was posted. Click here for a copy of the report issued by National Credit Union Administration's (NCUA) Office of Inspector General on the TCCUSF’s 2011 financial statement audit.
Two other reports from NCUA’s OIG have been released, one on the ability of NCUA examiners to identify natural person credit union risks and another one on how NCUA handles nonpublic information involving the Financial Stability Oversight Council (FSOC). The FSOC was created by the Dodd-Frank Act to address major systematic risk in the financial system. NCUA is a member of the FSOC, which is important because among other things, the FSOC may overturn a regulation of the Consumer Financial Protection Bureau.
The review of NCUA’s Reg Flag Reports examined how the agency dealt with high risks in 25 “judgmentally sampled” credit unions, five from each region. The report found that in 76% of the credit union sampled, examiners had addressed high risk areas. For the others, there were repeat document of resolution (DoR) items or outstanding DoR issues. In two of the credit unions, there were concerns with the state examiner’s approach.
The NCUA OIG’s review of how NCUA’s handles information it collects and share with the Financial Stability Council. The report concludes that NCUA’s “existing policies and procures at not sufficiently comprehensive to …protect confidential nonpublic FSOC information form authorized disclosure.” The report includes a number of recommendations to NCUA for improvements in this area.