Telling A Larry... Part III

On the Hill it's
very, scary to larry !!

Thought we might continue on a bit with the quiz , evaluating the testimony before Congress last week of Mr. Larry Fazio, Director of Examination and Insurance at NCUA.

Here are a few more quotes [try not to mutter "RBC" as you read]:

1)  "In developing any regulation, NCUA strives to ensure that the agency's rule makings are reasonable and cost effective."  a) True,                  b) False, c) THAT'S A LARRY!

2)  "NCUA additionally conducts an analysis to inform the agency's decisions in advance of regulatory action." a) True, b) False, c) THAT'S A LARRY!

3)  "The analysis also ensures that regulatory choices are made after appropriate consideration of the likely consequences."   a) True, b) False, c) THAT'S A LARRY!

4)  "NCUA's inability to oversee third-party vendors also poses a regulatory burden for credit unions."  a) True, b) False, c) THAT'S A LARRY!

And, without doubt the most Capitol Hill- LARRY -ious statement of all-time...

5)  "NCUA was spending more exam hours on the smallest credit unions rather than the largest credit unions that have... the greatest potential loss exposure to the Share Insurance Fund."  a) True, b) False, 

c) THAT'S A "BALD-FACED" LARRY!

 THE CHART COVERS 2001-2011

a) During the 2001-2011 period, of the total 224 CU failures, 199 (or 89%!) occurred in CU's <$50 million in assets.

b)  Of the total $890 million in losses, $225 million occurred in CU's <$50 million in assets.

c) Of the total $890 million in losses, $850 million (or 96%!) occurred in CU's <$350 million in assets.

d) During the 10 year period from 2001-2011, only one loss for $40 million (4%!) occurred in a CU with assets>$350 million.

THE SOURCE OF THE CHART? THE NCUA !!

... and that ain't no larry !!!