ALEXANDRIA, Va.—NCUA’s Office of Inspector General (OIG) has closed two investigations into NCUA Chairman Mark McWatters with no action taken.
According to the OIG, it opened a conflict of interest investigation into McWatters following a complaint alleging the chairman participated in a vote to rescind the Financial Stability Oversight Committee's Systemically Important Financial Institution designation of American International Group (AIG), while he owned stock and warrants in AIG at the time of the vote.
McWatters stated that he believed his holdings fell under the Office of Government Ethics (OGE) de minimis exemption and he was not required to recuse himself. OGE informed McWatters and the OIG that the exemption only applied to stock holdings, not warrants. McWatters provided information from security lawyers and accountants that warrants are the same as stocks and are publicly traded, according to the OIG.
The investigation was closed with no action taken against McWatters. The news of the closed investigation was first reported on the blog of Keith Leggett, the former senior vice president and senior economist at the ABA.
Second Complaint
A second complaint accused McWatters of misuse of NCUA funds for extravagant travel, including allegations of premium air travel and expensive meals. The investigation found that McWatters was reimbursed for alcohol expenses of almost $150 associated with three meals. While there was no violation of law, the OIG said NCUA policy did not permit for the reimbursement of alcohol expenses. Since closure of the investigation, NCUA has changed its policy to allow for the reimbursement of alcohol expenses. The OIG also found that the reimbursement of McWatters for other expenses, including premium air travel, UberBlack, and hotels did not violate the agency's policy, Leggett also reported.
These findings were reported in the agency's Semiannual Report to the Congress.