CUs to NCUA: Hands Off Our Bylaws

WASHINGTON – CUNA derided NCUA’s recent proactive regulatory agenda yesterday and urged the NCUA Board to reject a proposal to set up the regulator as the enforcer of federal credit union bylaw disputes. In a letter citing recent attempts by NCUA to increase credit union transparency, CUNA said NCUA’s proposal to reestablish the bylaws as regulatory in nature–with NCUA as the arbiter–is “too undefined and inconclusive." CUNA said it supports NCUA intervention in certain instances, such as when members seek to block conversion to a mutual savings bank, but does not want NCUA to adopt broad authority to mediate all bylaw disputes. CUNA, which also opposes NCUA initiatives to increase member access to books and records and information about management compensation, wondered whether these efforts to expand credit union transparency are an indication of a “more proactive regulatory posture.” NAFCU also urged NCUA to reject the bylaws proposal, saying NCUA monitoring of bylaw disputes "can create a slippery slope to overly burdensome and ineffective regulatory oversight." In its comment letter signed by chief lobbyist Dan Berger, NAFCU said it believes in the notion of members’ rights but does not believe those rights should be federally regulated.