... fudge can impair your figure(s)!
✅ Seized credit union planned to understate loss - NCUA
By Reuters Staff
WASHINGTON, April 10, 2009 (Reuters)
Senior managers - [the CFO usually prepares and publishes the financial statement - Mr. Hayes was the CFO] - at a major corporate credit union - [you guessed it - Wescorp!] - seized last month were preparing to report a credit loss significantly below what an external analysis had revealed, the U.S. regulator of credit unions said on Friday.
An external analysis by Western Corporate (WesCorp) Federal Credit Union resulted in a credit loss estimate more than $500 million greater than WesCorp’s internal estimates - [internal estimates usually performed by "senior experts" with "capital markets specialist" skills] - the credit union regulator said.
Senior managers at WesCorp were prepared to report an impairment figure for certain securities as of Dec. 31 that was based on the lower internal estimate, the National Credit Union Administration said.
WesCorp Suit Alleges Negligence.
The suit, filed Nov. 24, charges that officer and volunteer defendants began to change WesCorp's investment focus in or around 2003 [same year, 2003, Mr. Hayes joined Wescorp senior staff as SVP in charge of ALM ("asset liability management") in charge of investment/balance sheet risk], when the corporate invested in more mortgage- and asset-backed securities, particularly subprime, alt-A and option ARM collateralized instruments.
That "irresponsibly risky" investment program abandoned the "mission, purpose and goals of the credit union system," plaintiffs claim. Furthermore, defendants failed to recognize economic conditions and take steps to protect assets, instead reassuring members that "finances were sound" and that "WesCorp's 2008 financial performance would be its best year ever."
Other defendants include dismissed executives Robert Siravo and Robert Burrell, as well as current and former WesCorp employees James Hayes, Jeremy Calva, Laura Cloherty, Jeff Hamilton, Dwight Johnston, Timothy Sidley and DavidTrinder.
... smiling because you like fudge?
... y'know, I really can't stand much more of this!
👎 [Yep, you're not alone!]