"Listening" To The Fed... Not Just Another "Vacant Look"

The Federal Reserve regulates and supervises some of the largest and most sophisticated (well, other than that "little $2 billion incident" last month and the full-fledged "run to Mama" collapse of 2008!) financial institutions in the U.S.  The Fed is the acknowledged "first-in-class" U.S. financial/economic watchdog.  They've got the horsepower, the resources, the talent, and the credibility - despite Ron Paul's often wickedly insightful observations on their lapses!

"Advising" a CU Board...

So, what in the world is the Federal Reserve Bank of Richmond doing holding a day-long seminar on "Reclaiming Vacant Housing" in Charlotte, N.C., with star-studded panels of the "Who's Who" in affordable housing, finance, government policy, and community development? Don't they need to be out there "pea-cocking" in some local bank's board room or be down at Disney "training"?  What in the devil is going on?


"What's going on" is a very fine example of responsible and responsive regulatory leadership.  

Unaffordable housing?

Responsible in the fact that many N.C. and S.C. communities have a tremendous problem with a growing inventory of abandoned, vacant, and REO homes, arising from the current recession.  Financially, the Fed as a regulator, recognizes that financial institutions need to work with their communities to help solve this problem in order to reduce losses, to help clear the inventory, and to help "kick-start" our economies back into recovery mode.  Responsible in that the Fed has led the way by giving its banks the regulatory flexibility to keep REOs for up to five years and even to manage those houses as rental properties until the economic corner can be turned.  


Responsive in that the very daunting Fed views itself as "a player", even as a principal organizer and partner, in this extremely important endeavor.  Responsive in that the Fed was willing to step forward, to wade in, to put its reputation on the line....to lead!  Making a very visible commitment and statement in North and South Carolina toward "moving the ball forward"...

A Home Run.... Let's do it!

The state-chartered credit unions which were at the seminar are going to help solve the vacant housing equation for our State - working with the affordable housing, academic, and government policy experts we got to hear.  The Fed, the "most feared" of regulators, created that opportunity.  


Hopefully, much as on the recent TDR issue, one of the Board members in Alexandria will perhaps - in a year or two - "hear from a credit union official" that there is a problem in housing in the U.S..... and NCUA will "spring into action" on this important issue, too. 


Unfortunately for now, Duke Street seems to be embarrassingly stuck - trying in "John Edwards-ian" fashion - to explain away "its past".  Last century leadership will find - in a 21st century, "speed of light" world - that it is....    


Very hard to drive into the future while looking in a rear view mirror..... 


Most folks understand, you can't change the past.... but you can change the future!!