07:12 PM PDT on Friday, July 16, 2010

The Press-Enterprise

PDF: ACU letter

An Inland economist has drafted a letter to the chair of the National Credit Union Administration demanding the regulatory agency explain its decision to seize Arrowhead Credit Union and seek community input on its future, among other things.

Redlands-based economist John Husing, who has been a member of the financial institution for 22 years, began circulating the letter Thursday among the region’s business and political leaders who he hopes will add signatures in support.

The point of the letter, Husing said, is to give a collective voice to what he has been hearing from others in the community.

“They are shocked, they are outraged, they want to know what (the National Credit Union Administration is) going to do with it,” he said.

A spokesman for the administration did not respond to an e-mail seeking comment.

NCUA regulators took control of Arrowhead when they placed it under conservatorship on June 25, dismissing the board of directors and supervisory committee and placing top executives on paid administrative leave. Those executives were terminated by the NCUA on Wednesday.

“As local leaders, we will do whatever is necessary to highlight NCUA’s as-of-yet unsubstantiated and unsupported actions related to Arrowhead Credit Union,” Husing wrote in the letter. “We will support any action that will expedite the members and owners of Arrowhead Credit Union receiving their credit union back, including engaging our large Congressional delegation.”

The NCUA has said Arrowhead’s financial condition was continuing to decline and showed no sign of improvement. The administration has also said Arrowhead reported inaccurate financial information in its first-quarter report.

“At some point this group has to respond publicly to what they’ve done,” Husing said. “What are the darn numbers?”

Husing wants the NCUA to show members proof why it needed to seize Arrowhead when it did and have an independent auditor look at the state of the credit union as of June 25, when it was seized. Husing and others have contended that Arrowhead was on the mend.

Husing said a few business leaders have already agreed to sign the letter, including Michael Gallo with Kelly Space and Technology Inc. based at San Bernardino International Airport, Redlands lawyer Paul M. Shimoff and David W. Moore, a senior vice president of NAI Capital.

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