Monday, March 23, 2015

New Feature: "NCUA Larry Of the Week"... NCUA Third Party Oversight

From The CUTimes:

From a Heather Anderson piece on NCUA's legislative priority to acquire regulatory powers over all credit union third party service providers: 

Really nuts!
"However, it also seems like a major NCUA operating budget increase would be unavoidable."  

"The NCUA insists otherwise. Director of the Office of Insurance and Examination Larry Fazio told a breakout group at GAC the agency is hoping to keep vendor authority as budget neutral as possible. Most people found that statement unbelievable." 

If you ask professional credit union leaders (and of course, NCUA would never think of doing that!), they will quickly tell you that acquiring the expertise for compliance, cyber-security, risk management, monitoring and control is anything but "budget neutral"!  Knowledgeable, experienced people are an expensive, scarce resource at this time.

But, maybe this isn't another NCUA "larry"; perhaps the critics have forgotten that NCUA has developed some unique, internal approaches to training...

... and they're simply fantastic !!!


Anonymous said...

In the words of Oliver Twist "Please sir, I want some more." And at NCUA more is what you get. More regulation and more expense because their history has shown that every new program or rule, every change in a program or rule costs credit unions more. In fact NCUA should become MORE because more is all they want.

They talk about zero based budgeting and yet they do not know what that means. They talk about budget neutral but the only thing that is in neutral is themselves as they are not able to move forward at any rate of speed.

The last budget was again smoke and mirrors. Their juggling of positions from the regions to the central office and then saying hey held the line was nothing but a bowl of cold porridge. Because of reduced work load positions in the regions were eliminated. Rather than decreasing positions and showing true savings they added positions so as not to decrease their total numbers.

They cannot show one area where they imposed more regulation on credit unions that did not cost credit unions more money.

They claim they need fraud specialists, risk specialist, stress specialists even special specialists. And yet they say all these specialists will be budget neutral.

In the words of a battered credit union manager "Please sir, I want less."

Anonymous said...

And now we know why NCUA held their conferences in Orlando. So they could go to the Magic Kingdom for retraining.

Anonymous said...