Can Credit Unions Learn From Bank Consent Orders?

These are very interesting times indeed for the financial institutions
industry. In any period of challenge, our human nature seems to
prompt us to look to see what the institution down the road is dealing
with. Today, many banks are dealing with what are called Consent
Orders (Orders) issued by their regulatory bodies. Because those
Orders are public (you can read them on the Internet), I often hear
bankers asking “did you see that XYZ Bank got a Consent Order?”
While we are all curious about the troubles of our competition, I see
significant opportunities being missed by institutions who seem to be
focusing on the wrong things. Rather than focusing on the woes of
others, we should instead focus on the lessons we can learn from
their Consent Orders and the opportunities for our institution to avoid
being on the receiving end of a similar order in the future. While
credit unions cannot get an Order per se, I believe they can learn
from these Orders and are missing opportunities if they are not
reviewing them for applicability.

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