improve enforcement and auditing requirements.Franklin was a special

A House panel is expected today to criticize the National Credit Union Administration's supervision of an allegedly fraud riddled Nebraska credit union whose failure in 1988 could become the costliest ever for the industry's insurance fund.A House Banking subcommittee, at a hearing in Omaha, will focus on the circumstances that led to the closing last November of the Franklin Community Federal Credit Union in that city and on steps to prevent similar regulatory lapses. Depending on the recovery of assets, the cost of resolving Franklin could be as high as $37 tiffany cufflinks.Some lawmakers have complained that the last audit of Franklin was in 1985, despite repeated NCUA requests in later years for follow-up audits. Also, the alleged fraud was uncovered by the tiffanys tiffanys Service and the Federal Bureau of Investigation, not the credit union regulator.

NCUA officials testifying at the hearing are expected to agree that the agency "perhaps could have been more tiffanys in following up" on warning signs at Franklin, said spokesman Robert Loftus. But he stressed that the NCUA contends that fraud is "not a major problem for credit unions" and that the agency supports tiffany bangles to improve enforcement and auditing requirements.Franklin was a special-purpose, "low-income" institution formed in 1968 to help an Omaha neighborhood rebuild after racial riots. As a low income credit union, it was tiffany earrings to receive deposits from nonmembers.The credit union officially had assets of about $2 million when it was closed last November, but manager Lawrence E. King Jr. and associates allegedly accepted about $40 million in unrecorded funds from depositors. The NCUA has filed a lawsuit alleging that Mr. King diverted Franklin funds for his personal and business uses that included aircraft charters, lodging, food, entertainment, clothing, and jewelry.

A federal grand jury last week indicted Mr. King, his wife, and three former employees on various tiffany rings of tiffany bracelets and conspiracy.Today's hearing will be conducted by the House Banking general oversight subcommittee.John Amick, legislative director for House Banking Committee member Douglas K. tiffany key rings, R-Neb., said his boss and other congressmen are likely to press NCUA officials on the questions of why they did not come down harder on the credit union and why the agency might be having problems detecting fraud."It's incumbent upon Congress to prevent the situation which occurred in the S&L industry from happening in the credit union industry," he said.

Mr. Loftus said NCUA representatives will say that the agency examined Franklin "at least every year" and that tiffany necklaces money clips, outside audits from 1985 and earlier "were conducted while the scam was ongoing but did not detect it."He added that improvements in examination and supervision methods have been instituted since the Franklin tiffany bracelets. One example, he said, is a limit instituted in December on the amount of deposits that can be accepted from nonmembers.Proposed savings and loan bailout legislation includes amendments tied to the Franklin case that would require annual independent audits by certified public accountants of credit unions with serious record-keeping deficiencies or other problems. The proposal has been passed by both the full Senate and the House Banking Committee.