Former SEC chief urges CUs to disclose

A trade report quotes Harvey Pitt, former chairman of the Securities and Exchange Commission, urging credit unions to comply with the audit and disclosure requirements of the 2002 Sarbanes-Oxley corporate governance act.

Pitt, according to a May 31 report by Credit Union Journal, said that an accounting scandal could mar credit unions’ reputation and lead to “a Sarbanes-Oxley-like requirement.” He said that if problems arise, “there will be a clamor for” credit unions to come under such a rule, CUJ reported.

The report, which was repeated in the American Banker on June 1, also notes the recent decision of State Employees’ CU in North Carolina to voluntarily comply with Sarbanes-Oxley even though the law is not currently directed at credit unions.