Thursday, January 08, 2015

Goldilocks...


 While we all await the "new" RBC rule coming January 15, 2015, let's recall how we got here ...



The NCUA Board, as you are well aware, is composed of three members appointed by the President of the United States and confirmed by the Senate.  The Board members serve a six year term of office.  The NCUA Board has the fiduciary responsibility to administer the Federal Credit Union Act (FCUA) and to oversee the operations of the Agency.  An important role of high responsibility, directly affecting the lives of over 100 million American credit union members.

The current NCUA Board members are Ms. Matz, Chair; Mr. Metsger, Vice Chair: and Mr.
2014 RBC Train Wreck!
McWatters.  On January 23, 2014, two of these Board members voted to issue a proposed  RBC rule for credit unions and quite literally "all hell broke loose". But let's not replay that story; most of you know it all too well and there is a very strong consensus that last year's RBC was a regulatory, political, and public relations disaster for all involved.

On January 15, 2015, America's 100 million credit union members will again be "put at risk" with a "new" RBC  rule on the agenda for the NCUA Board. Will a better decision be made this time, especially when two out of three of the sitting Board members were such vocal, ardent supporters of last year's disastrous version? Have they acknowledged their error?
 
Keep getting this strange
bunker mentality vibe..
One possible way to judge the tenor, balance, judgment and temperament of the NCUA Board as the January 15 meeting looms is to look at how they acted at their last Board Meeting. Here take a look at the video of the November 20, 2014 NCUA Board meeting on the important issue of the NCUA Budget.  

Pay particular attention to the statements and discussion of the Board which occur between  53:15 and 89:00.
(... if pressed for time try 81:00/89:00)

Believe each Board member says a whole lot about themselves, their thought processes, and attitude toward America's credit unions and our 100 million members - don't you?

Too, Too!!
Was particularly fascinated with Mr. Metsger's promulgation of "The Goldilocks Rule" in his financial analyses of the budget, y'know not too hot, not too...

One might equally apply "The Goldilocks Rule" to the individual performance of the NCUA Board members. Take a look at that meeting segment and see if you can determine which Board member might be "not too hot", "not too cool", and which one perhaps offers some hope of being "just right".... 


6 comments:

Anonymous said...

Can we make it until August and make sure Matz goes?

Anonymous said...

Ms. Matz will not leave in August. She will stay until a replacement is approved. The is not going to happen with a Republican controlled congress. The only way she is going out is with a change of administration. Ms. Matz will not be the Chair if a Republican is elected. Whether she stays on the board at this time is another question. If Hillary wins Ms. Matz may be replaced more promptly than would normally be the case because Mr. Matz worked President Obama against her in 2008. Her appointment was just a political payoff to him. Ms. Matz career is a string of Political appointments to boards. If Mr. Matz supports someone like Elizabeth Warren, and for some strange reason she wins, than it could be groundhog day because there would be no pressure to get a appointment passed.

Anonymous said...

Commenter 2 offers some interesting perspectives on the current Chairman and what can, may or will happen.

The term of the current Chairman actually ends in April and even though she may want to leave, the odds of another Democrat being confirmed by the Republican controlled Senate are slim to none.

Having been appointed by the current President, the Chairman, if she so desires, can remain in that position not only through the balance of the current President's term but up until a new President, in 2017, gets around to looking at and considering who to nominate at NCUA.Then of course the confirmation process begins and takes its own time to complete. So again, is she wants, the current Chairman could be in place well after the 2016 elections.

Now of course depending on who might win in 2016 be it Clinton, Warren, Bush, Christie, Romney or whomever we can speculate not only on appointments but the Chair position as well.

If a Republican wins its McWatters if he wants it. But there are so many other more visible challenges out there. If Clinton wins perhaps Hyland returns to the Board. If its Warren, all bets are off.

Bringing this back to current time,if the Chair decides on her own to leave after April we will have a two member board. That's a story for another day.

Bottom line. Time will tell.

Anonymous said...

She's definitely not improving with age. Would have thought that experience would have broadened her understanding of CUs. Seems less sure, no core beliefs, just doesn't get it.

Anonymous said...

Watching the NCUA board meetings is better than watching episodes of The Walking Dead. It's fun to watch as the couple attempts to match wits with the professor only to see them continually put their feet in their respective mouths.

The VC came on the board as the hope and voice of the battered credit unions only to sell his soul, beliefs, philosophy and vote for a title.

The C has only one direction, her way or the highway. And when you own the second vote why change course.

Let's hope the professor can withstand the mickey mouse games being played, hold true to his principles and continue to point out the wrongs and rights of what is proposed.

I am popping my popcorn and getting ready for next weeks episode.

Anonymous said...

So, the current Board is composed of Mickey, Minnie and McWatters?