TAMPA, Fla.-Transparency isn't always all it's cracked up to be, warned one credit union executive.
Tom Dorety, CEO of the $5.8-billion Suncoast Schools FCU believes it is popular now to call for more transparency whenever government agencies are the focus, including regulators, more because "transparency" has become a buzz word, than because it's always a good idea.
"It just sounds good. If NCUA establishes standardized procedures that include notice to credit unions of potential actions against all troubled credit unions, they potentially create damage to the share insurance fund as well as to credit unions and their members," Dorety said.
"If anything, the agency should be encouraged to react as promptly, and as quietly, as possible to merge troubled credit unions before their financial difficulties are exacerbated. We've witnessed how the FDIC deals quickly and decisively with troubled banks to stabilize the institution and reassure bank customers. NCUA should be no less diligent in how they handle similar situations."
Dorety added that he supports open bidding on potential merger partners when it makes sense. "But let's not create a system that can do more harm than good."
