Barred from Corporate CUs; But Not Retail CUs
by Keith Leggett
I was reviewing NCUA’s administrative orders associated with the personnel at the two costliest credit union failures — Western Corporate FCU and U.S. Central FCU.
The orders with one exception had the same language barring the individual from:
- becoming an employee, holding any office in, or otherwise participating in any manner in the conduct of the affairs of any federally-insured corporate credit unions;
- consulting or advising any federally-insured corporate credit unions on any matters involving or related to investment securities, investment policy, or invesment strategy; or
- selling any investment securities … to any federally insured corporate credit unions.
However, these prohibition orders with one execption did not bar these individuals from becoming an employee or participating in the affairs of a natural person or retail credit union.
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