WASHINGTON, DC (February 20, 2014) – In an industry known for cooperation, economic participation and openness, why is the federal regulator denying a Freedom of Information Act (FOIA) request about the disposition of TCCUSF funds? More importantly, why does the Agency continue to get away with operating in such a closed process?
Those are questions a new paper from Co-Ops for Change explores in light of loss overestimates of $7.6 billion related to the assessments imposed on credit unions. As NCUA trickles out data on the current status of the TCCUSF, it is clear there was an enormous magnitude of error in the Agency’s projections. Yet when presented with a Freedom of Information Act requesting clarification, NCUA’s response was obscure and evasive – and tinged with hubris.
“One has to wonder why information isn’t forthcoming about such a significant event in credit union history,” said Chip Filson, Chairman of Callahan & Associates and founder of Co-Ops for Change.
Similarly, credit unions’ requests for information about their exam findings are often denied, he noted. “What prevents this from happening again, either to one credit union or to the whole industry?”
The new Co-Ops for Change paper discusses the issue of Agency oversight, the status of billions of dollars assessed on the industry and the millions of dollars paid out in expenses. It is available at NCUA Corporate Resolution Plan.
About Co-Ops for Change
Co-Ops for Change is a grassroots movement to increase awareness both within the credit union community and among elected policymakers that our regulatory leadership should understand and support the seven cooperative principles. The regulatory process should consider credit unions’ cooperative character, as well as the shared economic value they create for people and communities. Credit union members, volunteers, professionals and industry supporters can learn more about the campaign at www.Coops4Change.org.