Sept. 20, 2004


  • I couldn't agree more with Mr. Filson. His subject is share insurance but the same concerns about NCUA's conflict of interest obtain in the case of charter conversions. NCUA cannot serve objectively as the arbiter of the process when a successful conversion will diminish its fund. It launched a set of oppressive rules in February to try to stop conversions, and is now proposing even more bizarre and burdensome regulations. Charter conversions are of interest to only a few credit unions but, as Mr. Filson points out, it's another freedom that may be lost -- one step at a time -- if NCUA continues to play prosecutor AND judge.
  • The proposed rule is an example that NCUA is not objective when it comes to decisions which affect its cash flow. Other financial regulators do not behave this way. Clearly, proposals like this make one want to exit the system before they are trapped.