The industry's largest trade group is lobbying to put a state credit union regulator on the National Credit Union Administration board.
The Credit Union National Association thinks the move would give federally insured, state-chartered institutions a greater voice in policy decisions affecting them.
It also could act as a check on NCUA Chairman Norman E. D'Amours, who has been charged with micromanaging the industry.
"We're actively seeking to see if we can get a state supervisor whose principal duty is regulating credit unions," said Charles O. Zuver, director of governmental affairs for the Credit Union National Association.
Mr. D'Amours opposed the notion, saying a fourth board member could deadlock the body in 2-2 ties. Further, he said, allowing a state regulator to serve on the board of a federal agency raises a question of principle.
"The full faith and credit of the states doesn't back up the National Credit Union Share Insurance Fund," he said. "The full faith and credit of the federal government does."
In an April 3 memo to CUNA officials, Mr. Zuver said the trade group's proposal was inspired by a bill recently introduced by Sens. Phil Gramm, R- Tex., and Richard Shelby, R-Ala., that would put a state banking regulator on the board of the Federal Deposit Insurance Corp.
"Both senators may be willing to introduce a bill (that) would add a state credit union supervisor or director to the NCUA board," the memo said, "but only if the credit union bill parallels" the FDIC proposal.
In keeping with terms of the FDIC bill, the state regulator would serve a two-year term and would receive no salary as a board member. Further, the new board member would participate only in issues that affect state- chartered institutions.
Some see the effort to increase the board's size as a means to dilute Mr. D'Amours' power as chairman. Thanks to a regulation eliminating shared management between corporate credit unions and trade groups and other of his actions, Mr. D'Amours has been peppered with criticism from several segments of the industry.
