Sign In To Keep Reading!
Need To Register?
Thank you for your interest in reading the fantastic content we have on CreditUnions.com! All users must log in to read, research, browse, and have fun on CreditUnions.com. It's free to create an account.
Learn What You're Missing
Upgrade Your Subscription
Learn More About Peer-to-Peer
Upgrade Your Subscription
Back to CreditUnions.com
Read & Watch
Deposits & Payments
Search & Analyze
Find A Credit Union
Find A Credit Union Executive
Build A Peer Group
Strategy & Performance
Anatomy Of A Credit Union
Market Share Guides
Credit Union Directory
Negative Histories Need Not Apply
It’s Not A Branch, It’s A Learning Lab
Take The Pain Out Of Branch Placement
10 Ways To Make A Great Hire
Millennials In Focus
Big Rewards Increase Member Engagement
A Tool To Woo Potential Merger Partners
Ensure Smooth Success Tomorrow
How To Succeed At Wellness Programs
Shruti Miyashiro On Leadership
Add Security And Reliability To Cards
9 Best Practices To Operate ITMs
NCUA Pays Big Attention To Small Credit Unions
What To Listen For When The NCUA Board Discusses The Revised RBC Rule
The Practioners Council And RBC Revisions
Will NCUA’s Revised RBC Rule Benefit From Banking Regulators' Experience?
NCUA Owes Credit Unions $2 Billion In TCCUSF Refunds
Industry Performance (3Q 2015)
Industry Performance By The Numbers (4Q 2016)
Industry Performance (1Q 2016)
Industry Performance By The Numbers (4Q 2015)
Industry Performance By The Numbers (1Q 2015)
NCUA Summarily Executes 6 Credit Unions Without Due Process
How NCUA’s Corporate Actions Affect the Three Pillars of Our System’s Financial Integrity and Soundness
A Look at the Most Critical Event Occurring in Credit Unions Today
How The NCUA Can Speed Up Bailout Returns
Billions More Reasons For The NCUA To End The Deepening Secrecy
Sept. 1, 2011
Chip, your are not only on target with your comments but you're "on the money", our members money!
We need the same call for accountability from the trades who seem to be cooperating with the agency on these issues of grave concern.
Where is CUNA and NAFCU on this issue. How can they remain our paid advocates and remain silent. We just got a bill for two billion, and all they talk about is some legislation or threat they are fighting for our benefit.
When the threat is really our own agency.
NCUA and NAFCU, go to the hill, demand accountability and transparency, call for change, it is time !
Chip is on the money - CUNA NAFCU Missing in Action!
Looks like NCUA is going to help shrink the Federal Government payroll. Eventually putting themselves out of a job by crashing the entire CU movement, and thus, eliminating the need for NCUA Completely.
They have handled this from the beginning, as typical, inept, self serving, job protecting government employees (Aren't they supposed to be public servants) that only care about themselves.
We could collaborate and work and stand together to tell them where to go, but I'm afraid even in these unique times, most CU's will simply be led to slaughter by these creeps.
Here they are regulating an entire industry, and their biggest concern is themselves. Most Credit Unions are strong, and getting stronger despite the current economic conditions, and ironically, they are going to make us all, collectively weaker.
Time to revolt!~
We have a right to expect more accountability from NCUA and from our national government as a whole. It is uncomfortable turning over large sums of money to a system is still broken.
Justice and a productive turnaround will not be achieved by blanket solutions. Those who have been weakened by irresponsible actions (even credit unions), i.e., weak ALM structuring, poor lending decisions, high exectutive level compensation or other actions that have prevented them from having the capital needed to ride out this unforeseen event. Those who took risk without adequate knowledge, leverage and capital reserves are at fault too. Stop rewarding their actions by continuing to pool them in with the weak and vulnerable.
More representation concerning the solutions, better thought out (even if complicated) solutions that look at the reasons behind the problems and target accountability for, future prevention of and when relevant repayment for the problems created by any responsible parties.
Chip, great expose of NCUA.
A voice of reason in a world filled with confusion. Your articles are always insightful and spot on!
The NCUA is way out of control. The need to hire additional people and while indicating that much of the cost associated with the NGN Securities Management Committee with be used for consultants is ridiculous. Why are they hiring additional people if they are paying consultants? The NCUA has turned into a bunch of bureaucrats looking for their next meal ticket. I guess if their pensions ever have cash flow problems they can just issue an assessment to the NPCU gravy train and pass their pension needs through the TCCUSF. This entire mess is disheartening and sickening.
It has become increasingly tiring and frustrating to consistently see the agency, and its politically motivated leadership, continue to focus on what it can do to look good in the eyes of the U.S. government rather than on what it can do to help credit unions better serve Americans. It is equally frustrating to have our trade associations continue to welcome these same people with open arms to national gatherings of credit union volunteers and professionals. As they do so those in the audience are expected to treat them graciously and respectfully as they give speeches filled with venomous insinuations that credit union people were idiots for not seeing the severe economic downturn coming and preparing for it and the governmental bureaucrats (and possibly Suze Orman) were the ones who saved us from ourselves.
What would be wrong with our national associations considering an alternative approach? Perhaps it could be something along the lines of saying "Thanks, but no thanks Ms./Mr. NCUA official for your offer to appear at our meeting, but we are no longer interested in granting you public forums that help you build your personal résumé while you continue to take actions that put the interests of government ahead of the interests of the people that it is supposed to serve." (By the way, the "Thanks, but no thanks Ms,/Mr. NCUA official" clause qualifies as both gracious and respectful.)
Gotta good reason...
It really is becoming one large Credit Union, managed by the NCUA. The scary part is, many at the NCUA, including their Executive Management Staff, have absolutely no idea how to do it. We all suffer every time NCUA makes a decision. Why is that?
Where the heck is NAFCU? Where the heck is CUNA? Our trade associations are in bed with the regulator - figuretively speaking. Actually NAFCU & CUNA are too busy protecting our tax exempt status and seeking alternative capital to be concerned with the real actual issues confronting us today. Once again our trade associations are no where to be found. They remain once again consistent.
I agree with Chip on this article. The NCUA should just wear a mask or pass a note to one of our tellers. But if they did that the GPS in the bait money might tell us where the money is really going. Oh well.
As a small credit union this assesment is a hard hit to take at a time like this.
It is very difficult to explain to our members who attend our annual meeting why our credit union is only profitable when you minus out the NCUA assesment.
And yes as a small credit union we get a large turnout at our annual meeting and our members are not dummies. With our with the NCUA mandatory financial training.
"probable intervention by the Treasury Department" - Intervention by the Treasury department would be the best thing that could happen. CUNA and the leagues remain mute at best and cheerleaders at worst. If a corporate issuer of an ABS made these kind of statements they would probably be violating securities laws. Brokerage firms are already backing away from handling this paper due to these statements. The fear liability if a bond is sold in the primary or secondary markets and the client did not have knowledge of ncua's talk of possible defaults.
Very well said. I am torn by the situation we find ourselves in. The need for an independent regulator (which I believe is absolutely critical to our survival) vs. the need to totally clean house with existing leadership, Board and staff.
As someone alluded to previously, the idea that our regulator is more concerned with their survival than ours doesn't bode well for the next few years as we continue to work through a struggling economy.
Why don't they just conduct a risk assessment, that fixes everything!
Seriously, when our members are suffering our regulator keeps placing stress on our capital and ability to help them when they and the nation need us to help boost the economy.
Dennis D. Degenhardt
I echo all the comments about our trade associations. They've had us chasing the debit interchange issue like chicken little's, meanwhile the NCUA is killing us with expenses and ill advised suggestions during the examinations. Where are our associations?
Onace again,Chip has summarized the concerns that I believe most of us have felt, but could not articulate. Thank you Chip for providing us so much needed information and warning.
However, instead of casting stones at the trades or CU's for that matter (from posted comments I see) especially since it was the economic meltdown which has been the primary reason for the majority of the investment/loan losses, just suggest that those that are so critical of others(it only shows a lack of immaturity and weak leadership)use that energy and put it in good use to get things done for the sake of our future.
Each of us can start now and communicate to our other colleagues that we each need to voice our concerns to our respective trades. They will have no choice but to direct their attention and represent our concerns to NCUA. Let's just do our part constructively instead of venting to each other and again, use this energy and frustration and start working together to get back our industry.
PS - I do not work for or have any association with the trades. I'm just a long time employee of my CU wanting us ALL to do better for our members and our industry.
So, how can NCUA be forced to account for all the money we have sent them in assessments and NCUSIF replishments?
NCUA Pays Big Attention To Small Credit ...
Industry Performance (3Q 2015)
NCUA Summarily Executes 6 Credit Unions ...