A Plan for the Corrective Action Regulation

The prompt correction action regulation now being contemplated by the NCUA will make the earlier HR 1151 controversies seem mild. The history of recent regulatory initiatives by NCUA -- such as the FOM proposal which contained many questionable restraints or constraints on FOM activities, and the earlier regulations such as the Investment (703) and the Corporate (704) which showed a lack of sensitivity to credit union needs -- paint a predictable pattern of NCUA's promulgation and issuance of regulations. Unfortunately, these, coupled with HR 1151's disregard of credit union professionalism by setting into law that no more than one person with credit union experience can serve on the NCUA Board, call into question the neutrality of the federal government regarding credit unions. There are no comparable restrictions on appointments by bankers to the Treasury Department, the FDIC or the Federal Reserve.




Dec. 1, 1998



No comments have been posted yet. Be the first one.