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| IRR-ate !! |
IRR-esponsible exam practices.
In a letter dated February 22, 2013, Mr. Becker complained about "the substitution of examiners' opinion and judgment for management's decisions" in IRR exams at NAFCU member credit unions. Although the 'New' Credit Union Administration (NCUA) welcomes the use of individual credit union specific IRR data "in many of it's letters and policies"... in practice "in examinations the 'New' Credit Union Administration(NCUA) has disregarded that data..."
So, despite the assurances yesterday at GAC (only one day after Fred Becker's letter ) that "things had changed at the 'New' Credit Union Administration(NCUA)...... the here and now at NCUA looks very much like the then and there at NCUA.
By the way, here's how "they" practiced their foolishness at one credit union with which I am familiar...
"... the examiners kept yammering about using stochastic modeling in the ALM analyses and economic forecasting. Wasn't quite sure what that really meant, to tell you the truth; but got sort of intimidated and became too embarrassed to ask...."
Q: Can you tell me what "stochastic" means?
A: Sure! the word stochastic means: "to guess".
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| The "tail" trying "to swag" the dog? |
It sounds a whole lot more professional than simply saying: "I don't know." And, Stochastic Wild Ass Guess sounds so much more sophisticated than Silly Wild Ass Guess!
Some Agency officials fear that if an examiner ever seems uncertain, it might give the appearance of weakness or, perhaps even worse, humility. Could dangerously lead successful, experienced CU managers to start thinking:
"Well, I feel my "stochast" is as good as yours!"
The New-CUA...
... same old "swagger" and boast!
6 comments:
Here's my STOCHAST! Reform at NCUA is impossible the rot is too deep and a move to FDIC is economical, makes sense and doesn't require us to reinvent the wheel. Give me one good reson why we should keep an unreformable Agency betcha can't.
HAVE YOU SIGNED THE PETITION ?
www.coopsforchange.org
#213
Dennis,
Thanks for signing the petition.
Folks on this blog quite often ask "What can we do?"
Signing on to the petition is a very positive step..
You can read the petition at www.coopsforchange.org....signing on with the White House website takes just 30 seconds...your name, your email address, your zip code.
Now, Dennis you've got to do one more thing...get two of your kids, neighbors, members, church members to also sign on... ask them to confirm with you...and that they will ask two of their friends...
Social responsibility, regulatory reform,democratic action requires only that you personally sign on and stand up.
If you don't have 30 seconds to do this it's ok, but stand down and shut up....
You wanted to do something, didn't you?
Actually Im trying to organize a "sign up party in the cu" because getting 100 thou is going to be a tough nut in a month so there has got to be a lot of parties" Good luck but standing down is not in my nature...
Thanks for sharing such a post. It’s very different from the regular ones. Keep sharing.
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