Friday, June 15, 2012

New SPAM From NCUA - Third Bite: "Econ. 101"....

Do They "Eat Their Own Cooking"?
How we doing with the NCUA SPAM analysis? (see posts of 6-7&11-12).  

If you struggled with "the first exam" don't be surprised, 'cause NCUA no longer uses a "pass/fail" system.  Exams are now measured more on a "never good enough" approach and graded "on a curve(ball)"!  Even appears that many exams may now be graded in advance:  "Here are the conclusions upon which our findings will be based!"

But, before we proceed on to the NCUA SPAM loan/delinquency maps; a reader suggested that rather than continued critiques of the NCUA SPAM program, perhaps some "legitimate, constructive" suggestions might be appropriate - especially since NCUA is now "listening"

OK, good advice; here are three legitimate and constructive suggestions to improve the "backwards economics" being used in SPAM:

1. Focus on the principal geographic problem.

2. Repossess the Crayolas!  Since they won't be needed anymore - See #1 above.

3. Cut your "backwards economic" budget by $2 million (crayons are expensive!) and use those funds to establish regional CU advisory boards which will meet semi-annually with NCUA.  If you don't believe, that local CU folks know more about what's going on "economically" in their state and communities, than any two dozen DC-based economists - you've got much more than just a "listening" problem!  And, so does the entire credit union movement  See #1 above.


Anonymous said...

You right on target Jim....But the NCUA all they know how to do is not to listen and spend our money. The leadership from the top down is the worst I have had to deal with in my 20 years. More credit union folks need to start demanding change.

Jim Blaine said...

Q: Was asked if the FDIC or Federal Reserve have such advisory boards?

A: Yes to both and the boards have been in place for many years. The Fed actually has several advisory boards at the national level with CU representatives on at least two.

Additionally, the Fed Regional banks also have advisory boards on which CU representatives have and do participate.

NCUA remains "unique" in many things it does... and does not do...........