GAO Cites CUNA Influence at NCUA

WASHINGTON – In yet another government study issued Friday, the Government Accountability Office recommended that the NCUA Board be expanded to five members, from the current three, in order to diversify points of view and to ensure continuity when the Board has one or more vacancies. NCUA objected to the expansion of the board to five members, saying the estimated expense of more than $1 million a year would not justify it. The GAO also cited significant influence by CUNA, with four of the agency’s seven political appointees recent CUNA employees, a far greater presence than any trade group among the banking regulators. Only one of the four banking agencies has as many as two political appointees from the industry it regulates, and each of those is from different trade associations. GAO recommended that NCUA adopt additional independence and objectivity standards as other regulators, including those requiring an arms length relationship with the regulated industry.