Robert Siravo Fined $600,000, Banned from Federally Insured Credit Union Employment
October 19, 2012
October 19, 2012
The National Credit Union Administration (NCUA) has issued a prohibition order against Robert Siravo, the former CEO of Western Corporate Federal Credit Union (WesCorp). The punishment order carries a $600,000 fine and prohibits Siravo from working for, holding office in or being involved in the operations of any federally insured credit union.
Siravo was at the helm when WesCorp, once a $34-billion entity, collapsed in 2009.
The credit union system is still paying billions to stabilize the impact of the failure of WesCorp and other corporate credit unions on the Share Insurance Fund.
Siravo and four other senior managers were locked in a bitter legal battle with the NCUA when the regulator sued them. The litigation created embarrassing theater in which both sides pointed fingers—senior managers who maintained regulators were on the premises while WesCorp’s finances unraveled, and regulators who questioned management’s operating practices.
As most of the former executives have now settled with the NCUA, the prohibition order against Siravo closes another chapter. Siravo agreed to the prohibition order’s terms without admitting liability or fault.
“We need to close this chapter,” said Troy Stang, president and CEO of the Northwest Credit Union Association (NWCUA). “We have a stronger corporate system today than we did before. It would be healthy for the credit union movement to be forward-focused now.”
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Posted in NCUA.