Wednesday, February 18, 2015

Another Sort Of Larry... Interest Rate Risk (IRR)

Be wary of a larry!
Mr. Larry Fazio in his testimony before Congress last week said the following:

"NCUA's focus on interest rate risk [IRR] management has been constant and pronounced for more than 15 years, as evidenced by a steady issuance of guidance to examiners and credit unions on asset-liability management. Since 2010, interest rate risk management has been a heightened focus for NCUA, and it is a primary supervisory focus for the agency again in 2015."

No one working around credit unions was surprised that IRR has been on NCUA's mind for quite a while, that's irrefutable.  No one should be surprised that IRR is a "primary supervisory focus" for 2015, a focus that most think now approaches irrationality.  

15 years
of IRR leadership.
But, what was a bit of a surprise was that Mr. Fazio and the NCUA don't seem to understand that despite a "constant and pronounced focus for 15 years" and a "heightened focus" since 2010"; that their efforts - "as evidenced by a steady issuance of guidance" - have produced the worst two IRR disasters in CU history - the Corporate collapse of 2009, which bankrupted the Share Insurance Fund, and the much more recent, but equally bad 2014 display of IRR non-acuity, RBC #1 !

Folks are
It should not be too difficult for NCUA to see why Congress, credit unions,  credit union members, and a whole host of other CU "stakeholders" have grown increasingly irritable about what appears to be an  irreversible agency adventure in IRR irresponsibility.

There does come a point when the Agency's reputation and credibility become irretrievable and its purpose as "an independent agency" becomes...

... and that's no larry!


Anonymous said...

Ti be relevant you need to think on your own, lead instead of follow, be respected instead of disrespected and most important, be real instead of rogue.

Anonymous said...



The NCUA Board Meeting on March 19, 2015 will stream live to those not having anything else to do and wanting a few good laughs. Please be animated, move around and do not give the appearance you are bored and have no idea what is going on.

The VC will open the meeting with a monolog standing in front of the board table.

The C will then read her script and lay the ground work for what the VC is to say after the Professor speaks.

The Professor will take to the podium and chalk board to try and explain the lost ways of NCUA.

Staff testifying will be asked to face the cameras so as not to give the impression their back are to the wall.

Since this is the premier there will be no commercial interruptions. The ED however will announce that the presentation is possible under a grant received from a well know DC law firm known for writing legal opinions.

The meeting will close with all Board Members standing to sing Why Can't We Be Friends.

Anonymous said...

Why can't we be friends~Sly and the Family Stone

"Like to be the President so I can tell you how your money's spent!"