Credit union regulators and trade representatives could take the opportunity to review their own disclosure and reporting requirements in the wake of the burgeoning accounting scandals among publicly traded companies.
Credit union members/owners ought to be provided with greater information about the operations and payments being made by their credit unions.
Regulators, like NCUA, ought to be looking at requiring more detailed information currently required of publicly held companies, such as the pay and benefits of top executives and details of large expenditures.
To date, I have found no evidence that that is occurring.
The regular review of financial disclosures provided by public companies to the Securities and Exchange Commission always reminds me that credit union owners have no way of knowing whether the manager of their credit union is overpaid or paid fairly or whether the credit union took a bath on a poor investment or large loan.
How about information about a possible sponsor downsizing or merger discussions with another credit union?
How about a board discussion about conversion to a mutual savings bank?
Yes, I would like to know how much I'm paying the CEO of my credit union.
Or whether my credit union had to sell off at a loss that property it was holding for potential expansion as a new branch.
Or whether NCUA or law enforcement officials are investigating the credit union for some crime, like financial fraud, predatory lending, or loan flipping.
All that information is readily available for owners/shareholders of publicly traded companies. Shouldn't it be for credit union owners too?
