White House Withdraws Leon-Decker’s NCUA Board Nomination

The White House announced yesterday that it has withdrawn the nomination of Carla Leon-Decker to be a member of the National Credit Union Administration (NCUA) Board. Decker widthdrew herself earlier, so this was a formality.

Leon-Decker had been named as the candidate for a term on the NCUA that would expire Aug. 2, 2017, and would have taken the NCUA board spot vacated by the pending departure of Gigi Hyland, whose six-year term on the NCUA board ended in August. Hyland is still serving on the NCUA board in the absence of a replacement.

León-Decker is the current president and CEO of D.C. Government Employees Federal Credit Union, and past positions include stints as operations manager and as president and CEO of PAHO/WHO Federal Credit Union and as branch manager of Transportation Federal Credit Union. She is also a credit union development educator and director of the Network of Latino Credit Unions & Professionals.

It was also announced yesterday that the NCUA has settled out of court in a case regarding HSBC’s sale of mortgage-backed securities to five failed corporate credit unions, with the banks agreeing to pay the NCUA $5.25 million with no admission of fault.

Losses resulting from such credit union failures are paid with funds from the Temporary Corporate Credit Union Stabilization Fund. The agency is using proceeds from this and other settlements to reduce assessments that are charged to credit unions to cover corporate credit union losses.

Including this settlement, the NCUA has now recovered from $170.75 million from banks that sold contentious mortgage-backed securities, having collected the remainder after it settled with Citigroup and Deutsche Bank Securities last year.

“This is NCUA’s third favorable settlement of actionable claims,” NCUA Board Chairman Debbie Matz said. “We appreciate HSBC’s efforts to resolve potential claims so that we can avoid the expense and delay of litigation.”

The NCUA is still seeking to recover an additional $2 billion from the Royal Bank of Scotland, RBS Securities, JP Morgan Securities, and Goldman Sachs in similar suits. Additional recoveries may also come from other firms that sold residential mortgage-backed securities that contributed to corporate credit unions’ losses.

“This settlement furthers our goal to minimize losses and thereby reduce the assessments that all credit unions will have to pay,” Matz said. “NCUA will continue to fulfill our statutory responsibility to secure maximum recoveries for credit unions and ensure that consumers remain protected.”

 

Questions or Concerns? Contact Matt Halvorson, Anthem Editor: mhalvorson@nwcua.org.

Posted in Federal, NCUA.