We determined NCUA conserved Constitution, in part,
because of inadequate management and Board oversight
that exposed the credit union to excessive amounts of
financial risk due to significant holdings of private label
mortgage-backed securities including subprime and Alt-A
mortgage-backed securities. Constitution‟s management and Board failed to
identify and manage this risk prior to the severe market value decline that occurred
starting in mid-2007 and became more severe in 2008 and 2009. Specifically, in
regards to managing the investment portfolio, Constitution management: