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| The Chief Architect |
"You spoke NCUA listened."
So spake Mr. Larry Fazio, NCUA's Director of Examination and Insurance, in a January 21, 2015 opinion piece ("Agency's Revised RBC Rule Responds To Stakeholders...") in the Credit Union Journal. Mr. Fazio is a most senior executive in the NCUA, a federal government agency "of the people, by the people, and for the people" - a position of high importance and responsibility, requiring the utmost in honesty and integrity.
Mr. Fazio was the principal author and architect of the 2014 RBC #1 proposal which so painfully demonstrated "a gap" in NCUA's capital/risk assessment capabilities and blew holes in NCUA's credibility all the way from Main Street Mid-America to the front benches of Capitol Hill. But in fairness, Mr. Fazio also provided the leadership on NCUA's recent "scrap-salvage-save face-damage control" reissue of RBC #2. "You spoke NCUA listened."
Mr. Fazio, in addition to his opinion piece editorials, has already become a webinar rock-star and trade association pontificator on the "great improvements" NCUA has made in the new RBC proposal, such as higher asset thresholds to qualify ($100 million), lower overall capital and risk weight levels, longer implementation period, and "removing interest rate risk components from the risk weights". "You spoke NCUA listened."
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| I smell something... |
But, while Mr. Fazio was so diligently and earnestly promising that NCUA had listened, seen the light, and changed its ways on interest rate risk in connection with risk-based capital, did you happen to notice the other little item approved at the January 15, 2015 NCUA Board Meeting?
The other important action item at the January NCUA Board meeting was the approval of the NCUA 2015-2016 Performance Plan, which outlines NCUA's main goals for the upcoming year. In fact, on page 50 of the Plan you will find NCUA's Priority Goals for 2015.
Take a look at Performance Goal 1.2.1:
* "Developing a proposal for a separate interest rate risk component for complex credit unions' risk-based net worth requirement by December 31, 2015."
Is there any doubt why a growing number of Americans - all the way from Main Street Mid-America to the front benches of Capitol Hill - can no longer trust what NCUA's leadership says?
Lie if you must, but don't take us for fools...
10 comments:
I wonder if Larry still wears his Superman cuff links?
Mr. Fazio's title should be NCUA's Director of Pontifications and Prevarications.
You need to get the Washington Post or Wall Street Journal involved on this.
Plenty of "deep throats" here ready to chat.
NCUA is even incompetent at lying.
The Faz has not yet figured out that there is a direct correlation to his lying and how obstreperous credit unions become!
On the subject but not on the subject - How many terms can one individual serve on the Board of the NCUA?
NCUA Board members are appointed by the President and approved by the Senate for a 6 year term and can not be reappointed for a consecutive term.
Jim? Are you suggesting just when credit unions think that it can't get any worse than Ms. Matz, there is a chance that Norm D'Amours could be her replacement!
Believe we all must agree that the NCUA Board role going forward - which affects over 100 million Americans - can no longer be perceived as a political plum job.
Just like the Fed and FDIC, candidates must be knowledgeable, fully capable, and accountable... it's long passed being a position of "political convenience". - just think FEMA Director when Katrina hit...
..... far too much at stake.
The Faz' comments indicates he does not understand, or chooses to ignore, it is NCUA ineptness, not capital levels, that pose the biggest risk to the insurance fund.
The RBC proposal would not prevent the cost to the insurance fund caused by critical oversight failures by NCUA at St. Paul Croatian FCU, Telesis CU, WesCorp, etc.
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