Friday, May 18, 2012

Pursuing The Safe and Sound Approach....

Taking the "discussion" to new lengths....!

"It's very, very dangerous to be right when the NCUA is wrong."


Anonymous said...

Jim, what organization oversees the OIG? Seriously, NCUA has gone too far and someone outside the industry needs to know and take action. I've been in your shoes and had hoped you could win one for all of us. Your board is to be commended for their indignation and determination.

Jim Blaine said...

In your Credit Union, the Board of Directors has full fiduciary responsibility for everything which goes on in the organization(as the NCUA so often - and with not-so-subtle intimidation - points out in its "Letters to Credit Unions"). That CU Board fiduciary responsibility includes the work and integrity of your internal audit folks.

OIG is basically NCUA's equivalent of a CU's internal audit function. The OIG reports directly to the NCUA Board, which has responsibility for the work product and integrity of the OIG folks.

Giving NCUA the first opportunity to review its actions internally through OIG was the fair and right thing to do - we all have imperfections, we all make mistakes. The appropriateness of the OIG report's conclusions are now the fiduciary responsibility of the NCUA Board to act upon.

Personally, I find it difficult to reach the same conclusions as OIG on the facts in the complaint - but imagine you are not too surprised at that! Know you don't have time, but you could download the OIG report at and take a look for yourself! Would be happy to respond to your questions about why the report might only represent a "half truth" and why that might ought to be you biggest concern. But, then again you probably don't have the time....

Realize that there are many opinions and emotions that have arisen from "the problem" in NC. It is a painful, tortuous process. It is difficult and time consuming to surface the true issues and actual facts - and find a way to get "the truth" before in a logical, understandable, non-biased way....perhaps that's too much to expect!

The goal is to let the actual facts tell the story... and let you decide. Still have quite a ways to go on that... Reform is the goal, reform - as this "problem" so sorely indicates - is very much needed.

T Caves said...

Mr. Blaine,
I'm more surprised every day with this situation - saw how the insurance industry seems to be facing similar regulatory issues. Been increasingly disheartened with the financial waste of these bureaucracies. With lending and interest rates low, only Federal agencies continue to receive 28% of my income. What can I do? Already frustrated with the amount of government regulation being added with the State elections… where can I affect change?

Jim Blaine said...

Q: Where can I affect change?

A: Where do you "belong"?

Places/groups to which you do not "belong"; may feel they do not have "to listen" to you.

Do you "belong" to your local,state, federal governments? Sure you do. Are they "listening" to you?

Why don't you find out? Have you thought about sending your representatives in government a summary of your thoughts and concerns?

Why not... haven't you heard of Twitter? It isn't that hard; they would like to hear from you; they will reply. Go for it!

Be sure to share your tweet and their response here....OK?