And while Dominguez received that rather large payout, the Credit Union will also have to pay the Central Bank.
Those payments that Registrar Micheal considered "small" on Friday are due to warnings or "corrective actions" that to date Central bank says St. Francis Xavier has not complied with.
What's interesting about these penalties is that they will ultimately be paid by the Credit Union's membership. Here's how the registrar broke down the rationale behind the charge.
Cherisse Halsall:
"In a letter addressed to you today the board asked whether there would be any financial penalties arguing that those would only punish their members, will there be any such penalties?"
Kareem Michael, Governor, Central Bank
"Um, so to go. Back to how penalties are levied on a financial institution, in doing the same on-site and off-site examination which I spoke about earlier. The central bank then takes and issues corrective actions to any licensee or financial institution. If the Central bank does not receive a progress report or information that those corrective actions have been addressed the Central Bank can either provide an extension or request that the Credit Union or the financial institution, um, provide an explanation as to why those corrective actions were not satisfied and it goes through that process, um, at a certain point then because of failure to meet those corrective actions the Central Bank, sorry, the registrar and or the Central Bank can then issue a sanction for. Failure to comply with. Those corrective actions. In this case, the registrar with a number of correspondences has said those corrective actions were not met and the registrar I believe had issued or had required Saint Francis to pay a small penalty on one set of corrections already. Now, I believe the letter which you would have seen was because there was another set of corrective actions, and there were a number of corrective actions having not been met. So, again we gave, we made, we responded to Saint Francis by asking then to make representation as to why those sanctions should not be levied again. So, give us a reason why you were not able to make that deadline and so the letter try to address that as making the case as to why the registrar should not levy sanctions upon the credit Union."
Reports are that the ousted board plans to have a press conference later this week.
