GAO Report Issued Early
A report from the U.S. Government Accountability Office (GAO) on corporate credit unions and how the National Credit Union Administration (NCUA) addressed the crisis was issued two days ahead of schedule on January 4. Titled, “Earlier Actions Are Needed to Better Address Troubled Credit Unions,” the report examines the collapse of several corporate credit unions and the NCUA’s response.
This study was mandated as part of the NCUA accounting bill - the National Credit Union Authority Clarification Act of 2011 - passed at the end of the 111th Congress. The study contains these two specific recommendations:
- NCUA is called on to produce financial reports to verify loss estimates in a more timely manner; and
- NCUA is asked to consider additional triggers for Prompt Corrective Action (PCA) that would require early and forceful regulatory action and make recommendations to Congress on how to modify PCA, as appropriate.
The NCUA has applauded the report and states that it has implemented some of the recommendations and would continue to do with others.
Click here to read the GAO Study.