So, we're off to a fast start with a bunch of comments on Part I! Not sure there was any clear, commentary on whether or not credit unions want and need a separate, independent federal regulator and insurer - do we? Why? No need going through any kind of analysis, if most folks don't really care - do we? Why?
What about the current NCUA Board - strong or
weak? Why? Again, no need to talk further if you believe the Board hasn't got the chutzpah to recreate and salvage the agency - will they? Why not?
But while we're waiting for you to share your reasoning on those questions, let's take a look at why it is so painfully obvious that NCUA has major problems...
The proof is the failure of corporate credit unions which bankrupted the NCUSIF - right? Nah, wrong!
We all need to "get over" the corporate debacle and move on. Despite the fact that NCUA folks literally sat cheek-to-jowl in the headquarters of the larger corporates, approving the risk positions that destroyed the system, most everybody on the planet also "missed" the catastrophe lurking within the financial system.
Yes, NCUA missed it, but "they" didn't do it on purpose - "they" simply didn't know what "they" were doing. Most of the NCUA corporate experts are still at the NCUA now in leadership positions - not so with their counterpart corporate execs, they were forced out - and often prosecuted - for their role in the failures.
As we go forward, just remember that "they" are still at NCUA and having escaped "the noose of accountability" should be wise enough and humbled enough not to so publicly and egregiously "mess it up" again - right?
But they did mess it up again and in a very big, ridiculous way! It happened just a year ago...
It was called the Risk-Based Capital Rule (RBC) - remember?