Decision Criticized; NCUA Says 5300 Data 'Inaccurate'
RANCHO CUCAMONGA, Calif.-NCUA's decision to place Arrowhead Credit Union into conservatorship was met with criticism from several people last week, including interim California/Nevada league President Dave Chatfield.
The decision is "surprising and disappointing," said Chatfield. "The NCUA's claim the credit union was in declining financial condition flies in the face of the facts. I was on that board and I know there are two sides for every story, but in this case I see little justification for NCUA doing what it did."
But John McKechnie, spokesperson for NCUA, said incorrect financial reporting related to ACU's loan portfolio by Arrowhead was also a factor. McKechnie told the Press-Enterprise that that inaccurate reporting could affect the overall balance sheet, and that losses are actually greater than reported on the March 2010 5300. McKechnie told the newspaper NCUA had not made any determination whether the inaccurate reporting was intentional or not.