Monday, October 20, 2014

Awaiting The "Second Coming" Of RBC....


TICK, TICK,....
Q: "CAN YOU PLEASE TELL ME WHY IT IS TAKING NCUA SO LONG TO REISSUE THE RISK-BASED CAPITAL (RBC) RULE?  WHAT'S THE PROBLEM?"


A: NOT SURE ANYONE KNOWS, BUT I CAN SHOW YOU THE PROBLEM THEY NOW HAVE...

Sunday, October 19, 2014

NCUA Economic Forecasts: Worth Their Weight In Robust...


AS NCUA HAS PREDICTED INTEREST RATES CONTINUE TO SOAR:

Up they go !!!
The 5-yr. T-Bill:

Jan. 15, 2014   1.62%

Feb. 15, 2014   1.53%
Mar. 15, 2014   1.57%
Apr. 15, 2014   1.62%
May 15, 2014   1.53%
June 15, 2014   1.70%
July 15, 2014   1.69%
Aug. 15, 2014   1.54%
Sep. 15, 2014   1.79%

Oct. 15, 2014   1.31%



As Gregg Stockdale has so appropriately pointed out about the NCUA economic videos... ("archived foolishness")... "NCUA just keeps crying wolf"!  Actually,...

Saturday, October 18, 2014

Friday, October 17, 2014

Risk-Based Capital: The Second Comment Period...


Roger that!

"IF STUPIDITY GOT US INTO THIS MESS, THEN WHY CAN'T IT GET US OUT?"

- Will Rogers

("They" are working on it!!)

Thursday, October 16, 2014

Cheap Tricks…. IMCR


The cause for the delay???
As we await the "second coming" of NCUA's risked-based capital rule (RBC), would like to revisit over the next few weeks the most egregious example of Agency over-reach and underhandedness in the current RBC proposal...

 "INDIVIDUAL MINIMUM CAPITAL REQUIREMENTS" (IMCR).

You can be sure that the NCUA will not willingly delete this unnecessary, unfair, and dangerously undemocratic provision without a campaign of active, outrage by all credit union members. If credit unions needed 2,200+ comment letters last time to attract Congressional interest and publicly slap NCUA into reasonableness...

WE WILL NEED TO HAVE 200,000+ COMMENT LETTERS THIS GO ROUND.  
HOPE "YOU'RE UP TO IT".

Here's the refresher...

Caught in the act .… again?
If you've ever read a cheap, trashy dime store (guess that's a "dollar store" these days with inflation!) mystery novel, then you know the easiest way to find out "whodunit?" is to start at the back of the book.  

In the final, poorly plotted chapter, the evil-doer is always identified (it was the butler!) and how the murderous crime was committed (with the candlestick in the billiards room!is also revealed.  These run-of-the-mill authors invariably save the worst for last.  The reader hoped for a new, imaginative story line, more deeply drawn characters, and more finely nuanced emotion; but closes the cover - played for a fool once again.


We're not even good
at "sneaky"!
NCUA's recent risk-based capital proposal is much like those trashy mystery novels, the worst crime is revealed in the last chapter of the rule (pages 195-198 of the 198 page printed draft.) Slipped in on the sly in the most common of underhanded fashion.  Hidden at the back with some assurance that you'd "miss it".  Crass trash, something of a signature of the genre.

The entirely new authority which NCUA awards itself ( for its' stellar, recent record of regulatory performance?) is designated as…

Wednesday, October 15, 2014

A Lasting Smile.... a Blast From The Past !!!

5th ANNIVERSARY EDITION !!!!

"Wiig'ed out?"
"In many ways, trust is a credit union's most valuable asset. This was really brought home to me in the fall of 2009 when I got a call from Suze Orman.  She said she wanted to learn more about credit unions - and she invited me to lunch. Suze asked about how credit unions work, and about the advantages they offer consumers. And she became one of the the most important friends credit unions could hope for...."


"Suze has lent her image - and her reputation - to NCUA's public education campaign...."



"Suze's confidence in credit unions speaks volumes.  It means she trusts credit unions with her personal brand."


- The NCUA Chair Keynote 
at the GAC - Feb. 2011


   "... she trusts credit unions with her personal brand."  
"... lent her image - and her reputation - to NCUA's ...." 


   Well, let's just hope that credit unions...

Tuesday, October 14, 2014

The Theory Of Risk-Based Lending ...



An economy on the edge...!
In this economy, if you, as a consumer, have recently experienced a couple of those unfortunate, unexpected, "real-world, real-life" financial flareups don't despair! Proponents of risk-based lending (RBL) know how to help you get out of trouble!  

According to risked-based theorists, the best answer for those on the "financial ropes" is to offer you a loan with a higher rate!  If you couldn't handle the regular rate,  "upping the ante" is bound to enhance your ability to repay - right?  


'Ya follow that logic, don't 'ya?!?

These guys have come up with a new financial life preserver for those who are economically "drowning".   Here it is...

Monday, October 13, 2014

All's Well At Exam Time.....



Ah so!
An ancient Chinese proverb famously tells the story of a frog which lived at the bottom of a well.  The frog was supremely confident in his understanding of the world; and, from his point of view, the sky he saw above him represented the entire universe.  The frog had no concept that anything existed outside his realm of understanding.

Limited understanding, limited outlook, limited vision sounds like a recipe for farce - except that it's not at all funny when "the frogs" decide to drag everyone else down to the bottom of the well.

Most credit unions, out of deference to and support of authority, have tried to "toad the line"... but if these regulatory "visionaries" keep it up, lots of credit unions are going "to croak".


Looking forward to another "ribbeting" exam cycle ....

Sunday, October 12, 2014

Saturday, October 11, 2014