This is to correct erroneous articles that appear in the July 23, 2009 online edition and the July 27, 2009 online and print editions of the Credit Union Journal. All three articles incorrectly assert that former WesCorp CEO Robert Siravo received a $6-million payout after NCUA placed WesCorp into conservatorship.
The July 23, 2009 online article, entitled "
The July 27, 2009 online and print articles, both entitled "
These articles create an impression that NCUA failed to fully repudiate Mr. Siravo's employment contract, thus enabling him to receive an extraordinary amount of money after WesCorp was placed into conservatorship. This simply is not true. Immediately upon placing WesCorp into conservatorship, the Agent for the Conservator repudiated Mr. Siravo's employment contract. That was the same action that was taken by the Agent for the Conservator of U.S. Central with respect to Mr. Lee's contract. The truth is that Mr. Siravo received his payout fromWesCorp almost one year before it was placed into conservatorship. It is patently incorrect to imply that action or inaction by NCUA was responsible for the payout in question to Mr. Siravo. NCUA, in the case of both corporate credit unions, acted responsibly and decisively to conserve the aseets of the two credit unions and to protect the interests of the members. Indeed, those are the principles that continue to guide NCUA as it carries out its responsibilities as conservator of these two institutions.
Robert M. Fenner, General Counsel
NCUA, Alexandria, Va.
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