Wednesday, July 20, 2016

NCUA: An Agency at the Crossroads.... Part IX


"The credit unions do not represent their members."
(Guess that's because the members are 
"an audience that does not exist".)

If change is needed, NCUA has in place the strongest and most capable Board in a decade.
(one "spot" has changed!)

And, as a commenter noted yesterday with exquisite precision, if there is a problem...


Section 1752(d) - "The management of the Administration shall be vested in the Board."

[... "management"... "shall be vested"...]



Anonymous said...

He's on the spot - "self-serving crazy talk".

Is there a problem? What's the question?

Anonymous said...

You said we needed to forget the corporates and move on. We need to forget Matz too, we may never be able to live that down.

But new Board, new opportunity, and yes change is needed.

Anonymous said...

The agency is currently run by the management that Matz put in place and continues to regulate and examine credit unions with the same arrogant attitude she displays here. Written rules are ignored and exams and findings are determined by examiners based on how they "feel" and what ever whim of the moment. Bullying Credit unions around because they can-- no credit union can conform to the rules because the rules are not followed and the examiners just make up stuff and then say that the rules don't apply here when the examiner is questioned about the matter at hand. The examiners are rogue and there is no appeal process. If Metsger and McWaters don't step up to the plate and instate their own folks at the top to train the examination staff that they must adhere to written rules, credit unions need to KNOW what the rules are so the policies comply. Hell, credit unions DO know and do comply! It's the examiners who make it impossible by changing the rules all the time based on a whim! The examiners want to sit at the board table!! and heavens forbid that should ever happen again!!!! the agency management needs shaking up from the top down. First thing is a culture change from arrogant I can do what ever I feel like because CU do not represent their members and anything I do is ok because the audience does not exist! We need an agency who knows the rules and follows them in exam procedures so that CUs stand a reasonable chance of compliance. and one that understands that small cus have a place in the usa and stops trying to shut them all down by bullying the CEO and board into expensive and unnecessary changes. what do we need to do to get Metsger and McWaters to see that they have to influence and change the attitudes and culture of the employees they are supposed to oversee? Help! we are really struggling out here and it's impossible to fight NCUA.
Change change change! Specifically change from the top down in the staff. Got to have Matz's arrogant know nothing attitude replaced.

Anonymous said...

I have yet to see any action from this strong capable board you continue to talk about other than the big M moving his mouth saying he is going to do things once staff has studied the matter and gives him a recommendation. The little M has been silent since the Queen left and seems to have fallen in step with the big M. They talk about working together to get things done but don't get your hopes up.

As an aside, Nussle should be sending flowers to the Congressman who has again raised the credit union tax issue. It has given his floundering organization its issue for the next twelve months. Start the emails going to Congress Jim. Milk it the best you can.

And at NAFCU it must have been a slow day for Mr. Burger. Another release urging NCUA hold budget hearings. Come on Dan can't you do better than regurgitate?

Anonymous said...

From my experience over the last few years with the rogues, you are being way too kind and polite. You gloss over petty tyrants at the top at great risk to the future of the CU.

Anonymous said...

Board meeting tomorrow. CUs will be watching to see if Metsger and McWaters have the leadership and guts to take on the staff and make the only changes that will bring about a strong agency. It will then take months to retrain the examiners in PROPER exam procedure but it CAN be done. Start with making the staff read the regulations and rules that are in place so that the examiners KNOW what the rules are to start with.Tell then those are the rules they are to comply with-- no longer can they make things up!
then make them read the monthly reports we all send in!!!

Anonymous said...

There seems to be a majority agreement that the NCUA board, if bold enough to do so, can make the changes needed in staff to effectuate the establishment of a well managed agency. The question is do either Laurel or Hardy have the desire or ability to take on the challenge. From what we have seen so far relating to results from what either one has done it appears unlikely that credit unions can expect anything of a significant nature.

Anonymous said...

Credit unions are in limbo waiting for the Congressional hammer.
The NCUA is in limbo waiting to be hammered.

CUNA and NAFCU powerless to do anything to stop what's coming and playing out the string while collecting dues money.
Money we waste on our members behalf.

Cooperate and collaborate THAT.

William Brooks said...

The root of the problem goes back to the 1980's when Congress tried to prevent another S+L problem. In 1989 and 1991 Congress passed Financial Institution Reform, Recovery and enforcement Act (FIRRIA) and Federal Deposit Insurance Corporation Improvement Act (FDICIA). Both law were designed to prevent a future banking problem like the problem we had with the S+L's in the 1980s. Silly Congress! Laws cannot be written to prevent humans from participation in financial manias. Humans just find new and different ways to screw up!

These laws were passed to correct problems that few credit unions had. The banking and credit union regulators were over powered in relation to their ability to control the power vested in them. When you give power to a person you should also establish strict controls. These two laws did give new authorities to the regulators without proper restrictions. The crushing burden of unfettered regulatory exploitation of authority is forcing a consolidation of credit union industry.

Prior to the two Banking Regulations being passed, NCUA was a part of the credit union system in a less aggressive fashion. Examiners received Ethical Indoctrination concerning the roll of credit unions and their roll in the system. While there was a policing component of the Examiner's duties, it was just part of the function.

The problem with NCUA Board and Staff is that they are over powered in relationship to their abilities to handle the power.

Anonymous said...

What's "the ask" to the NCUA Board? If they are willing, where do they start? What's first? What's the 1-2-3 to fix the problem?

Anonymous said...

Before there is change there has to be the will and desire to take on the task of making the change and doing the work and responsibility that it takes. At NCUA that does exist at the top nor any part of the agency. We should be glad that they change their underwear. That is about the most change they can handle.

Anonymous said...

1) Replace the senior staff with new folks who know what a credit union is. not a bank.
2) train this new senior staff in all the rules and regs that the examiner is to enforce. SENIOR STAFF IS NOT TO MAKE UP WHATEVER RULES AND REGS THEY WOULD LIKE!!!!! that are to follow what is existing.
3) hire folks that know what a credit union is.. not a bank...
5) follow up. the 2 McWaters and Metsger need to go into cus and talk to people.
6) establish an independent appeals process. INDEPENDENT!!!
7) Transparency!!!! stop hiding and redacting. this allows the staff to continue to be bullies because the CUs think its just their CU. If we don't know what's going on, it's hard for CUs to demand compliance by the regulator.

Anonymous said...

What did Tussle say?

Bill O'Brien said...

I need help! I was notified today that the NCUA has just arbitrarily called my credit union (Marine Federal) and told them that they had to shut down one of my business accounts. Their reasoning was that my business is too far from the nearest branch. According to the NCUA, they have a limit of 30 miles. The NCUA then acknowledged that I am only 24 miles away but, it didn't matter.

The credit union noted that I had a second business account at the same address that the NCUA had approved just a few months before. The NCUA acknowledged this fact as true and said that that account could stay open. They could provide no reasoning for these decisions beyond "because".

The account that they shut down is for my non-profit that I have established called Patriot Farmer Foundation. I have all of the proper licenses and government approvals. My non-profit serves veterans and their families. I am new to all of this and the whole idea that I can't use the bank of my choice seems insane.

Can anyone shine some light on this for me?

William O'Brien
President/Executive Director
Veteran Owned Veteran Grown, LLC/Patriot Farmer Foundation, Inc.