Fold NCUA's Tent Before Regulator Folds CUs
Editor's note: the following is in response to "NCUA Expands New Consumer Affairs Office," CU Journal's Daily Briefing Aug. 19.
The revelations about having to find a place to put all the "new hires" underlines a need to move quickly to fold NCUA's tent and have FDIC assume the role of regulator for CUs. Recent disclosures about hiring a press agent and "chief economist," roles that we got along without for decades, point out the La La Land mentality prevalent in the inner circle of NCUA. The cronyism (Kent Buckham fails in corporate land but is stashed until a new role can be created) is epidemic. Come on, organized movement, let's start to think this through. Can we be any worse off? I don't think so.
Can we any longer afford the duplication? No! FDIC has its own consumer affairs office-no need to re-invent the wheel. At the very least, why doesn't NCUA contract for that service rather than pay for the setup of this type activity. Why do we permit this budget busting activity when a simple takeover by the country's principal regulator is entirely appropriate. Is there really a need to have our very own regulator any more? Shouldn't NCUA be subject to the same compression and consolidation many espouse as the number of CUs decline.
NCUA's action to close and dissolve a small minority CU, without waiting for a judicial hearing, tramples the supposed checks and balance cornerstones of our democracy. What was the hurry? We have many very large credit unions operating at capital levels that can only be described as perilous yet they get a pass while our capital (to cover their losses) becomes thinner. Whether you like it or not there is a double standard and NCUA gleefully practices it because they sweep their mistakes under the rug with our money.
Where in private industry would you fail as miserably as NCUA did in the corporate debacle and still have a job? Anyone notice anybody being fired at NCUA?
If you are as sick of this as I am, contact your legislators individually. Impress upon them the need for an economical consolidation of regulators and remind them that the CUs being placed at risk are the smaller ones who are doing the real work of the movement. Heard it this morning: "Too Big has failed" and it is very true. The notion that small CUs are only a bother can be answered only by their membership and not some fat cat consultants who get paid to say dumb things by people who think dumb.
Do not rely on the trades! In most cases the state associations have become irrelevant to the survival of CUs and CUNA is a joke. They have not won any lobbying efforts of note in a very long time.
A simple reminder, from someone who lived very long ago, but whose word's ring true today. "If we can stop the government from wasting the labors of the people under the pretense of caring for them we shall be happy. T. Jefferson
Dennis Moriarity, CEO
Unity CU, Warren, Mich.