At NCUA's November board MEETING, Chairman Debbie Matz suggested Board Member J. Mark McWatters was "set[ting] himself up as a spokesman" for the credit union industry.
It called to mind previous accusations NCUA has faced—having been called everything from a "rogue federal agency" in "collusion" with the industry it regulates, to being a cheerleader for the CU movement.
It would be easy to chalk such accusations up to typical banker rhetoric—but the "rogue federal agency" comment was from a federal judge in 1996, and the "cheerleader" comment was then-House Ways and Means Committee Chairman Bill Thomas, citing 2004 court documents.
A brief reminder of the history of "cheerleader" references in our coverage of the recent NCUA Board meeting prompted the following comment from one reader, posted in the comments section on our website:
"Shouldn't regulators be 'cheerleaders' for the industry? The goal is safety and soundness, but the goals should also be a thriving industry. Our credit union is state-chartered and our regulator is a partner in our success. Our success is their success. McWatters may seem like a spokesman for the industry, but it's because he's listening and seeking opportunities for the NCUA to collaborate and work with industry to find solutions that address safety and soundness, as well as set the industry up for success and meeting the needs of our membership."
Certainly, CUs and their regulators should all have the same goal: a healthy CU industry. And, indeed, they should work together to that end. But working together and having the same goal isn't quite the same as being an advocate or a cheerleader.
There's a certain amount of natural tension between the regulator and the regulated, and that's as it should be. The relationship shouldn't be entirely adversarial, but neither should they be best buddies.
For all that NCUA Board Member McWatters has taken a number of stances that CUs have welcomed, I don't think he's hiding a pair of pompoms in his office in Alexandria.
Still, given the history of lawmakers and judges questioning whether NCUA's ties to the industry might sometimes be too close, CU advocates might want to tread lightly when referring to their regulators in such glowing terms.
Editor in Chief Lisa Freeman can be reached at
