Bloomberg/BusinessWeek ( 3/26 issue ) has an interesting profile of one of the recently appointed Federal Reserve Governors, Daniel Tarullo. A former law professor, Tarullo "turned the tables on the staff" when he sat down for their standard, initial briefings and discussions."Tarullo told them they had made mistakes in supervision, and he wouldn't defend their past actions. Later, Tarullo told Alabama's Richard Shelby, the leading Republican on the Senate Banking Committee, that he endorsed Shelby's view that regulators had fallen down on the job, and said it was time to "reshape" regulation."
Reshaping regulation has meant subjecting America's largest banks to rigorous "stress tests" ( rhymes with CAMEL..) and publishing the results to increase public transparency. Tarullo has even empowered the examiner force by changing the focus "from traffic cops issuing tickets for non-compliance" toward evaluating and understanding risk. "The changes represent a true revolution in regulation and Tarullo is the Fed point person on this."
Strong, thoughtful regulatory leadership who recognize the necessity to reshape and reform a system which failed the American people....
While over on the Credit Union front...
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7 comments:
Jim ... beyond a general call for reform, do you have something specific that we can consider? Do you have ANYTHING detailed that we can sink our teeth into? You think NCUA is a ponderous, dishonest and incompetent bureaucracy ... I get it ... at this point, I think we all get it. Many agree with you entirely or to some degree. You've got our attention. So ... what SPECIFIC reforms do you propose? Let's get them on the table and get to work.
Jeff,
Wouldn't be quite so harsh on NCUA as your adjectives imply ... although some folks might say the evidence of less than shining success is abundant.
Think an easy first step would be for the NC League Board, on which you serve, to invite the Chair and leaders of NCUA to a "listening session" with NC credit unions in the very near future.
The omission of an NC location on the "listening tour" is a pretty strong rebuff of NC credit unions, don't you think?
If NCUA were actually interested in "listening", one would think the first meeting would have been in NC...
Why won't the League ask? You have the power to start the discussion...
Jim ...
Gotta' say I think the discussion is already well under way! And anyone who's been listening knows the NCCUL has tried diligently to bring NCUA to NC. At times, you've even acknowledged those efforts (don't have any tapes ... DO have emails to prove it). :)
But I'm more interested in content than location. Not sure it really matters whether you sit in Raleigh or Alexandria when you talk.
Truth is I'm afraid many have checked out ... not with you on the CAMEL issue ... and just not interested in the peripheral battles.
Even so, I'll bet you could bring them back with a SPECIFIC reform proposal ... JUST ONE?!
Jeff,
Delighted to hear that the NC League has in fact asked NCUA to come to NC to "listen". Most NC credit unions have not been informed of that good news! ...So, just for the record:
< Who at NCUA was asked ?
< When were they asked?
< In fairness was NCUA given multiple dates from which to choose?
< Why did they refuse you?
<When do you plan to ask again?
Been fussin' a bit at Jeff about his pushiness for "specifics" on how to reform the CU regulatory system. First step before one addresses "the solutions" to a problem is to agree that there actually is a problem ... not sure that Jeff is "on the Bus" yet about where the problem lies...
But the real concern I have with Jeff is that he's an NCSU grad still experiencing issues with remedial reading...I know this for a fact because otherwise he would have discovered at least seven initial approaches to reform just within the above post:
1) Acknowledge that the old regulatory regime failed.
2) Create new measurement systems (stress tests).
3) Publish the results.
4) Increase transparency.
5) Change the goal of the exam and the role of the examiner ( no more micro-madness, no more traffic ticketing).
6) Develop a new approach to risk evaluation.
7) Bring in fresh leadership with fresh ideas to rechallenge the staff.
....I have quite a few more to add but when an NCSU'er like Jeff gets to 10 he also starts to encounter "enumeration difficulties" as he runs out of fingers....so better hold off at this point.
By the way Happy 125th Anniversary to all you NC State alums...but then again who's counting...
(And, of course, that would be Happy 10th to you, Jeff!)
Alright! Now we're startin' to move ... almost imperceptibly ... but still movin'. Vague generalities disguised as "specifics" is at least a place to start. Maybe as some substance is added we can get on the same bus ... but gotta' know where that bus is goin' first. At this point, I'm a little worried about the driver.
But leave it to my TarHeel friend to attack the messenger when the message gets troublesome. Shame on you Jim for casting aspersions on my math skills. Can't count past 10? You underestimate me ... I have feet!
Guess that means you can't have anything but perfect vision then.... you know "20-20"!
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