ALEXANDRIA, Va. – NCUA this afternoon issued a banning order against Timothy Sidley, the former chief risk officer for WesCorp FCU, the first civil enforcement action brought by NCUA against any executive in the failure of the five corporate credit unions.
Today’s order, barring Sidley from working for any federally insured credit union or bank, comes after Sidley agreed last Friday to settle civil negligence claims brought against him and four other senior WesCorp figures for the spectacular failure of the one-time $32 billion corporate credit union.
A second WesCorp figure is expected to settle the NCUA charges in the next few days. The other executives named in the NCUA suit are: CEO Bob Siravo, CFO Todd Lane, Chief Investment Officer Robert Burrell, and Human Resources Director Thomas Swedberg.
The prohibition order was one of the terms of a confidential settlement agreement between Sidley and NCUA to settle claims and counterclaims in that portion of the pending lawsuit against him, NCUA said.
In its civil suit NCUA charged that the top WesCorp manager loaded up the corporate credit union giant with too much risky mortgage-backed securities that collapse of WesCorp when the market cratererd in 2008-2009, causing a projected $7 billion of losses.
As vice president for risk assessment Sidley was responsible for assessing risk for interest rates, credit and liquidity for WesCorp’s $30 billion investment portfolio. He had 31 years experience in the financial services business and before going to WesCorp was senior vice president at Mellon Bank in Pittsburgh.
