The Government Accountability Office (GAO) yesterday issued a report on the National Credit Union Administration’s (NCUA) oversight of corporate and natural person credit unions that, among other things, calls on the agency to provide more information and transparency regarding its estimates of the losses for failed corporate credit unions.
The GAO study was required by the U.S. Congress in legislation enacted in January. The report examined the NCUA’s handling of five corporate credit unions that failed and the agency’s efforts to stabilize the corporate credit union system.
The report also reviewed the agency’s supervision of the 85 natural person credit unions that failed during the time period under review, which was from the beginning of 2008 to June 30, 2011. Those 85 represented less than 1% of total credit union assets.
The GAO report, which relied in part on NCUA examination reports and reports from NCUA’s Office of Inspector General, cited poor management as the “primary reason” that the natural person credit unions failed. GAO also faulted NCUA’s supervision of troubled credit unions, noting that the agency in some cases responded too late.