Tuesday, March 04, 2014

Doctors Orders: A Radical Amputoid-crainiotomy?

Mr. Dan Berger

The National Association of Federal Credit Union's lead-dog, Dan Berger, had a guest opinion piece in the 2/26/2014 edition of the CUTimes.  Mr. Berger's beef? (read that again slowly.) NCUA's micro-encephalitic risk-based capital (RBC) proposal.

"Where's the beef?" with Berger?  Mr. Berger plainly states:  "Enough is enough." And then adds this very fine diagnosis concerning NCUA's small-minded proposal:

Licensed to kill?
"The medical profession's oath to "first, do no harm" would be an apt principle for the financial industry's prudential regulators, including the NCUA, to follow. Unfortunately, the NCUA has released a proposed risk-based capital rule that would go quite the other way. It may just kill the patient."

Perhaps of equal importance, Mr. Berger implies what many credit union folks, based on the evidence of recent experience, now believe; NCUA can no longer be trusted to write fair and balanced regulations.  Berger says it plainly:  "We support less capital for low-risk and more capital for high-risk credit unions.  But we need Congress to make statutory changes to achieve a fair system." 

The "Answer"?
If we must look to Congress to help assure a fair federal regulatory regime; if we truly feel that our federal deposit insurer no longer "listens"; and if we honestly believe that NCUA is no longer responsible nor accountable; then let's be bold enough to ask….

… that the NCUA be consolidated into the FDIC.  

Do credit unions deserve less? 


Anonymous said...

Credit unions deserve more. The separate insurance purports be necessary to reflect the unique charter of credit unions and their focus of creating financial services of people of modest means.

Once you surrender the insurance fund you may as well surrender the industry.

The focus should be fixing what is broken and that is the complex regulatory structure impacting credit unions and forcing them to act like banks. Contrary to Jim's support for the CFPB on the blog, they are the bane of the devil. They present themselves as a necessary evil, but they are just plain evil. NCUA is now group of regulatory toadies who has their hand in member's pockets for their blotted bureaucracy and excessive salaries and pensions.

Sarah Mosley, CEO said...

I firmly agree with Anonymous in that the CFPD has been and will continue to be a thorn in our side. The culprits who created much of the mortgage mess never went away they are churning a new mess that will come back to those of us who are regulated with more regulations while they ride off into the sunset to rape and rob again.

Never liked spanking all of the kids just cause.