More CU Transparency Urged

INDIAN WELLS, Calif. - (05/31/05) -- Former Securities and ExchangeCommission Chairman Harvey Pitt called on credit unions to complywith the comprehensive audit and disclosure requirements of theSarbanes-Oxley Act, known as SOX, even though credit unions do notcome under the new law. "Bad things happen to good companies," Pitttold credit union executives at WesCorp FCU's Financial Forum, ofthe possibility a scandal could taint the reputation of creditunions and prompt a SOX-like requirement. "If there is a problem,there will be a clamor for FCUs to be held to the same standards asother companies. It is better to be ahead of the curve than behindthe eight ball, just to mix metaphors." At least one credit union,State Employees CU in North Carolina, recently voluntarilycompliance with SOX-like disclosures.