NCUA: Capitol Capital Clarification

Weaseling about capital
at the Capitol...

As you are well aware, since major Congressional hearing gaffs are pretty hard to miss; Mr. Michael J. McKenna, General Counsel of the NCUA, in testimony on Tuesday before the House Financial Services Committee, succeeded in publicly stuffing both of his spit-polished wingtips into his mouth .

Mr. McKenna's snafu was to state that NCUA was a long-time proponent of supplemental capital for credit unions and might - after decades of neglect - actually get around to doing something about this important matter - which to NCUA observers, came as quite a surprise . 

Unfortunately on Wednesday, Mr. McKenna issued a "clarification" of his testimony, stating he did not know what he was talking about - which to NCUA observers, came as no surprise.

What Mr. McKenna told Congress under oath about NCUA's efforts to reduce regulation (here's the link) is simply fibberish  particularly the following….

EXCERPT:

"Since 1987, NCUA has followed a well-delineated and deliberate process to continually review its regulations and give the public the opportunity to comment."

"This long-standing regulatory review policy helps to ensure NCUA's regulations:"

*  "Impose only the minimum required burdens on credit unions, their members, and the public."

*  "Are appropriate for the size of credit union regulated by NCUA."

*  "Are issued only after full public participation in the rule making process."

*  "Are clear and understandable."

There is a "tipping point" reg out for comment on risk-based capital (RBC).   Re-read the above and if you believe it , don't bother to comment.  If you find it "somewhat less than factual", you should…

regcomments@ncua.gov

AS YOU CAN SEE, YOU ARE VERY CLOSE 
TO HAVING WAITED FOR NEVER!