Credit Union Enforcement Gets Tougher, Publication Reveals

GAITHERSBURG, Md., April 23 /PRNewswire-USNewswire/ --Taking a cue from the banking industry, credit union regulators are about to issue stern instructions to examiners to remind them to take action fast when they spot financial trouble at a credit union, The Safety & Soundness Report reveals.

The National Credit Union Administration is drafting a Supervisory Letter on Administrative Remedies and Enforcement Actions, which will be completed by late next month, the credit union newsletter reports in an exclusive story in its April 26^th issue.

NCUA officials told the publication that the letter was a response to "the level of problem credit unions." The letter will instruct examiners to follow-up "on agreed upon actions and other enforcement action." Credit unions can expect stronger, faster responses from regulators, the newsletter reveals.

NCUA examiners, like bank examiners, have come under recent criticism for not acting fast enough to spot problems at credit unions before they failed. The new letter comes in the wake of an Inspector General's audit report that found fault with examiners in the years leading up to the failure of the Cal State 9 Credit Union, the largest credit union failure ever in California.

The Safety & Soundness Report, which also sponsors the 33^rd Annual Directors' Convention, is an award-winning independent newsletter that provides executive intelligence on credit union exams, enforcement and risk management. For subscription information, call 1-866-236-6228 or visit www.cusafety.com. For more information on this story, contact Aaron Steinberg, the editor of The Safety & Soundness Report, at 301-287-2471.

SOURCE The Safety & Soundness Report