From NCUA website [link Corporate Stabilization Plan]
✅ Control of U.S. Central FCU and WesCorp FCU
NCUA’s analysis of individual corporate credit union portfolios demonstrates the incidence of expected credit losses greater than total capital is concentrated primarily in two corporate credit unions. As a result, the NCUA Board has taken control of both institutions: U.S. Central FCU and Western Corporate (WesCorp) FCU, and placed them into conservatorship. Operation of both corporate credit unions will continue uninterrupted.
The remaining 26 corporate credit unions show a level of portfolio risk that NCUA considers manageable from the standpoint of capital adequacy. With the National Credit Union Share Insurance Fund’s (NCUSIF) full share guarantee in effect in both institutions through December 31, 2010, members can continue to invest in both institutions without risk of loss.
✅ Of all the possible choices! The SECU Board selected "the only one" - least likely to be qualified to lead SECU.
... smiling about "this Board's" good luck in finding the right CEO?
✔ Yes. The Board of Directors retained Russell Reynolds to conduct a national candidate search and extensively
investigate all CEO candidates, including Jim Hayes. The investigation included conversations with regulators
and others with first-hand knowledge of the Wescorp receivership and related litigation.
Anybody wonder how NCUA could recommend Jim Hayes to be CEO of SECU?... and how in the world "this Board" could have agreed? It appears to be an "Inside Job" - on both sides. Nasty business... please keep reading!
Just curious about something. If part of the bod did resign, would the remaining bod appoint replacements? I wonder if some of the former employees who have recently departed would agree to fill those seats? then there would be trusted board members, who knew and understood the employees, the membership, the structures. Kind of a caretaker board until October at the annual meeting. It would have to start with some of the bod getting out of the way, acknowledging all the mistakes and willing to give up control. Not sure that there is that sort of selflessness or ability of the bod to act for the common good. The current bod does not seem to understand "common good"...
ReplyDeletethey don't really have to acknowledge their mistakes (doubt they will ever, they'll blame someone, anyone) ... just walk em to the door ... enough is enough... it's kinda like disciplining your children at this point.
DeleteHow could you read his resume on linked in and not see he was in the thick of the investments that Wescorp made? No vetting erases his resume.
ReplyDeletemakes you wonder what kind of deal was struck don't it? Follow the money trail .... it's always about money!
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