The Senate passed a bill directing the Government Accountability Office to conduct a comprehensive study of the National Credit Union Administration's handling of the corporate CU meltdown where many of these wholesale "banks" failed because of bad MBS investments.
The study would also evaluate the agency's handling of the growing losses among big credit union failures.
The bill, passed late last week, would require the congressional accounting arm to determine the reasons for all corporate failures since 2008 and the adequacy of the NCUA's response.
The expected evaluation would also review the ability of insured credit unions to pay for the projected $16 billion price of the bailout and whether the program exposes taxpayers to any potential liability.
The legislation would also direct the GAO to study whether the NCUA has properly implemented recommendations made by its Office of Inspector General the past two years on reviews of 10 big credit union failures.
The study would be sent to the Senate Banking Committee, the House Financial Services Committee and the Financial Stability Oversight Council.
