Oct. 21, 2013


  • As usual Chip is right on. Each credit union is now on their own for liquidity planning, NCUA removed/destroyed the resources and then sent a letter commanding all credit unions to find liquidity resources. NCUA spends our money on "initiatives to help small credit unions", then they destroy the resources small credit unions used. I couldn't agree more with the sentence that NCUA "regulated the corporate credit union system into insignificance." We didn't invest in a new corporate not because of lack of faith in corporate CU management, but because the new regulations make the corporate CU business model so marginal.
  • This democratically controlled NCUA Board is forcing capitalism and risk management out of our movement and forcing us self-help and self-sustaining cooperatives to rely on a government which believes they know more then anyone else. This most recent political stand-off (of the biggest liars in the room), 1) isn't the last of these type of childish games, just wait for the can-kicked-down-the-road dates of Jan and Feb, and 2) proves that we should not put all our member's eggs into the government basket. Since the NCUSIF and CLF as well as the FDIC and Discount Window are 100% backed by the "full faith and credit", were will we stand if the next political football game ends in a tantrum?