The article highlights Fed Chairman Janet Yellin's perspectives on the level of "risky lending" and "reach for yield" among regulated banking institutions. Ms. Yellin summarizes her analysis with this observation: "My assessment... would be that the risks to financial stability are moderated, not elevated." That certainly sounds a very positive, hopeful note for the future! [And certainly contradicts NCUA's "current economic wisdom".]
Ms. Yellin did however surface a previously undisclosed threat to America's financial stability with this reported remark: "The financial crisis clearly revealed that even outside the regulated banking sector, [even greater risks exist] in ..."
The pamphlet"Common Sense"was published in Philadelphia by Thomas Paine on January 10, 1776 - two hundred and thirty-nine years ago. "Common Sense"sold over 250,000 copies in the Colonies, which at that time had a total population of about 3 million - equivalent to selling 30 million copies today! The pamphlet made Thomas Paine America's first 'bestseller' and "Common Sense" went on to be published with equal acclaim throughout Europe.
George Washington, John Adams, Thomas Jefferson - all acknowledged that Paine's "Common Sense" was the deciding factor in turning the tide of public opinion in favor of independence in America.....
The National Credit Union Share Insurance Fund (NCUSIF) is a deposit insurance pool cooperatively owned by 100 CU million members, who belong to federally-insured credit unions in the U.S. of A.
The fiduciary management of the NCUSIF has been entrusted by Congress to the NCUA. How does the NCUA view this trusted relationship between the deposit insurance fund and its 100 million, individual CU member-owners...?
So, literally at the same time Chair Matz was spreading the frenzied gospel of "end-of-world" interest rate risk (IRR) to the good folks of North Dakota(see here), back at home her NCUSIF investment gnomes were at play in the bowels of Duke Street, Alexandria.
And, what a robust time those little wizards were having - with your insurance fund!! Here are the new investments in the first quarter of 2015 which Ms. Matz' capital markets robusterians made on behalf of your credit union and America's 100 million individual credit union members...
Budget-wise: It's always a "good year" at the NCUA!
Talked a little bit last week about the flagrant (and soaring!), little skimming racket being run over at the the NCUSIF. As noted, theNCUA is abusing the overhead transfer rate (OTR) to fund its "Goodyear", good-timin' operating budget. By draining the cooperative share insurance fund's (NCUSIF) earnings, NCUA eliminates any need for fiscal, budgetary responsibility and transparency in its operations. With the skimming having risen from 25% of budget to 71.8% of budget, NCUA has acquired an addiction, an unslakeable thirst for fiscal sleight-of-hand - funded by the NCUSIF.
The conflicts of interest for the NCUA, in the dual role of federal regulator and federal insurer, are numerous. The Nation's last experience with how dual regulator/insurer conflicts of interest "get played out" was when the Federal Savings and Loan Insurance Fund (FSLIC) had to be bailed-out, at great cost, by the American taxpayers in the 1990's. Deja vu all over again?
But, let's take a quick look at another of NCUA's "dual roles" in managing the NCUSIF on behalf of the NCUSIF's owners - America's Credit Unions and their 100 million individual members....
Appear to be building quite a loyal fan base among CU marketeers!
Who could ask for more?
[Yes siree! Let's go ahead and stir that pot one more round!]
You might want to check out the recent article/post by James Robert Lay over atwww.cuinsight. com. Appears that some of Mr. Lay's commenters are not taking their "anger management"medicine as prescribed! Many of those "little messageers" are, shall we say, "Shades of Gray".... fit to be tied!!!