SEATTLE - Don't think for a moment the U.S. Treasury Department's proposal to eliminate dual chartering for credit unions is going to quietly pass by the attention of NASCUS.
The National Association of State Credit Union Supervisors held its annual meeting here recently, and emblazoned on the cover of its year in review report was a not-so-subtle message featuring no less than the 10th Amendment to the U.S. Constitution: "The powers not delegated to the United States by the Constitution, nor prohibited by it to the states, are reserved to the states respectively, or to the people."
"2008 was a year of challenges, many of which will continue into 2009," said Mary Martha Fortney, president and CEO of NASCUS, who encouraged all NASCUS members to remain vigilant and active.
Along with Treasury's "Blueprint for a Modernized Financial Regulatory Structure," Unrelated Business Income Tax (UBIT), capital reform and congressional advocacy were hot topics at the annual meeting. NASCUS is a member of the UBIT Steering Committee, and the organization noted the last two years have brought a flurry of UBIT activity after 10 years of no developments.
According to NASCUS, the Internal Revenue Service should be educated as to credit unions' purpose, and thereby realize CUs offer certain products and services to their members in an effort to promote thrift and savings. The organization said it disagrees with the IRS' interpretation of what is "related" to a credit union's business. NASCUS said it supports litigation and other efforts to challenge UBIT.
Cathie Tierney, president of Community First CU, Appleton, Wis., which was chosen to be among the first plaintiffs in lawsuits against the IRS, said the credit union and related parties have been busy preparing for the trial, which is scheduled for May 2009.
Other Voices At NASCUS
* Former NCUA chairman and current strategic consultant Dennis Dollar outlined several challenges facing CUs over the next 15 months, but his most passionate words were reserved for capital reform.
"Capital remains high, yet capital modernization is essential," he said. "Capital reform is the generational issue. If we don't fit it now, in this generation, I worry about the future generation of credit union leadership. Credit unions cannot become the dominant, locally owned financial institutions in our communities without capital reform."
Look for more coverage of Dollar's message to CUs in the Sept. 8 issue of Credit Union Journal.
* The NASCUS meeting marked the first national address as chair for NCUA Chairman Michael Fryzel.
"I will provide resources at my disposal," he said. "Based on my time as a state regulator of credit unions (in Illinois), I developed a philosophy of regulation. Safety and soundness must continue to be the top priority. My commitment is to be extremely vigilant during my chairmanship."
The second component of his philosophy of regulation, Fryzel continued, is the protection of consumers through disclosures. He said he welcomes the opportunity to work with credit unions as partners, but added that regulators are "successful if they are independent from the industry they oversee."
* Harold Feeney, commissioner of the Texas Credit Union Department, issued his final report as treasurer for NASCUS at the Annual Meeting. The former NASCUS secretary, board member and chairman of the board received special recognition for his service.
NASCUS named just-retired Florida regulator Sharon Whiddon winner of the 2008 Pierre Jay Award winner given to individuals who demonstrate outstanding service, leadership, achievement and efforts which benefit NASCUS and the dual chartering system.
* Three NASCUS board members whose terms were scheduled to expire in September were approved by NASCUS members to serve new, three-year terms: Iowa's Jim Forney, Michigan's Roger Little, and Utah's Orla Beth Peck. Mary Hughes, financial institutions bureau chief of the Idaho Department of Finance, was appointed to serve a one-year term.(c) 2008 The Credit Union Journal and SourceMedia, Inc. All Rights Reserved.http://www.cujournal.com/ http://www.sourcemedia.com/
