Sunday, December 07, 2014

On Transparency...

From the Financial Times (12/5/2014): 

"Financial Firefighters" - New York Fed Suffering Loss of Credibility...

"Part of the debate at the New York Fed is whether to release more supervisory information to impose market discipline on banks by letting investors know more about their true state - and in the process boost the Fed's image as a responsible watchdog."

"This is not over," says Simon Johnson, a professor at the MIT Sloan School of Management. "This is a governance issue and the New York Fed has to employ the same kind of scrutiny it imposes on the banks on itself. "They need to look in the mirror."

With the rapidly approaching, new era of credit union regulatory scrutiny - proposed risk-based capital, capital planning, stress testing, interest rate risk rules - the NCUA has a unique opportunity to set itself apart as the preeminent regulatory agency, the new standard bearer in transparent supervision.  

But take a look at the NCUA leadership's recent attitude (before Congress no less!) toward transparency...

" of the most arrogant and outrageous statements
 I've seen in my entire life.."

(Guess that is one form of preeminent recognition...!)

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