SAN DIEGO – Acknowledging her low point at NCUA was the 2005 grilling before Congress on the credit union tax exemption, outgoing NCUA Chairman JoAnn Johnson said yesterday the incident was orchestrated by the banks.
"At the Ways and Means Committee hearing I took a beating, there’s no question," said Johnson, during her farewell address at NAFCU’s annual convention. "But I like to think I took that experience and made it something to build upon. I took a beating because, one, I didn’t have the data for support, and two, it was basically a set-up from the banking industry. It was their agenda."
Johnson was referring to the banking lobby’s multi-year effort to get Congress to review the prized credit union tax exemption in hopes of getting lawmakers to repeal the exemption.
But Johnson said she was undeterred by the incident. "I would go through that Ways and Means hearing again if it meant I could come back and go through the process of working for the industry and serving as a regulator."
In reviewing the high-water opportunities of her six and a half-years with NCUA, Johnson pointed to:
* The conversion to mutual savings bank issue. During Johnson’s term the agency challenged and rejected several conversion bids, losing one such high-profile challenge at the court level. The board eventually enacted tough new rules calling for more disclosure. "Throughout that process I tried to keep my eye on the interests of the member and the aura of transparency, so the member has the information to make the best decision possible. I’m proud of the work we did in that area."
* Private deposit insurance. "Again, transparency for the member was first and foremost."
* Advancing the agenda of the Bush Administration. "You come into this position as a political appointee. Even in that position there is a thin line. You are coming into an agency with career staff who are going to be there long after you’re gone. What is your job coming in as a political appointee? Certainly it’s to put the face of the Administration on those areas where you have an opportunity, and I think we did that with housing and financial education."
