As a credit union member, you don’t need deep pockets to feel like you own the place. Also, the Form 990s for Texans and DFCU Financial Credit Unions did not provide any information on CEO pay. Suncoast Credit Union (which switched from a federal to state charter in December 2013) had not filed a Form 990 for 2013. Larry Scott of Campus USA Credit Union in Gainesville (FL) was the highest compensated CEO at over $5.56 million. According to the plaintiff’s lawyer, the judgment could increase significantly, if the judge finds the credit union engaged in unfair or deceptive practices. Notre Dame Federal Credit Union stated that five other credit unions participated in this business loan.
According to its corporate rule, if a corporate credit union contributes any capital to another corporate credit union, that corporate credit union must deduct an amount equal to this capital contribution when calculating its adjusted core capital. But it is not clear whether NCUA has the authority to require such an adjustment via regulation for natural person credit unions. With more people on the fringe turning to usurious solutions to their financial needs, the answer seems to be no. Yet, credit unions market the legend, not the reality. The biggest bank-like CUs are failing at this, Keating noted – nearly half of credit union members are upper income.
In an op-ed appearing today in the Capitol Hill newspaper Roll Call, Keating examined the foundations of the credit unions’ tax exemption: serving people of modest means” who share a meaningful common bond. Meanwhile, credit unions have all but gutted common bond” requirements using loopholes that allow new members to join via organizations whose primary apparent purpose is to qualify people for CU membership. Achieva Credit Union has signed an agreement to acquire Calusa Bank, a Florida state-chartered bank in Sarasota and Charlotte counties with $165 million in assets.
Despite a promising proposal, the National Credit Union Administration walked back somewhat from its plan to rein in expansive fields of membership (FOM) for federal credit unions via associational common bonds. The NCUA Board approved a final rule amending the associational common bond provisions of the agency’s chartering and field of membership requirements, including a requirement that the association must not have been formed primarily for the purpose of expanding credit union membership.
Moreover, the agency significantly weakened the requirement that a federal credit union (FCU) and the association the FCU wishes to add to its FOM demonstrate corporate separateness exists between the two entities. The National Credit Union Administration is reporting that 28 federally insured credit unions subject to civil money penalties for filing fourth-quarter 2014 Call Reports late have consented to those penalties. For example, OnPoint Community Credit Union (Portland, OR) pays for its CEO and Board of Directors to travel via first class.