RALEIGH, N.C.-SECU and NCUA have been arguing over more than just TDRs, including the CU's disclosure of its CAMEL code last year. An internal review conducted by NCUA's Office of the Inspector General failed to determine whether the $25-billion credit union's September 2011 disclosure of its CAMEL code violated NCUA rules and regulations (CU Journal, May 15).
The IG was also unable to determine whether Jerrie Jay, administrator for the North Carolina CU Division, told SECU directors at a December meeting with NCUA executives that the agency was threatening to pull the credit union's share insurance over the dispute, as one senior NCUA executive alleged. According to audio tapes of the board meeting, Jay appeared to be goading NCUA executives into threatening to suspend SECU's share insurance, but there was no smoking gun, the report concluded.
Yet one source, asking for anonymity, suggested SECU's release of its CAMEL code may have been done in an effort to deflect NCUA plans to pull the CU's insurance. The source also questioned whether SECU's move to drop its delinquency ratio was also made to check NCUA, which allegedly was questioning its safety and soundness. The source surmised that SECU has a close relationship with the state regulator, which may have prompted the state office to be less concerned with the credit union's delinquencies than the federal regulator.
