Going to offer up today a little walk down Memory Lane about the fierce debate which occurred in 2014 and 2015 over the risk-based capital rule (RBC) within the credit union movement. A little refresher course on what the issues were that led to a full-scale, full-throated revolt against the NCUA that reached all the way to the halls of Congress.
Why the rehash? Because the NCUA is in desperate need of reform and as we've discussed over the last few days the questions confronting us are: 1) Is the NCUA worth saving as an independent agency?
2) Will the NCUA Board step up to the difficult task of reform?
3) How does one demonstrate unequivocally that there is "a clear and present danger" within the agency which requires the NCUA Board, credit unions and if necessary Congress to act - and to act now.
Why? Because the NCUA RBC rule failure is recent - this walk down Memory Lane is just a short, one year stroll into the past! The NCUA RBC rule failure was unnecessary given the well-conceived RBC standards already existing both nationally and internationally. The NCUA RBC rule failure contrasts NCUA's weakness versus the well-reasoned competence of its regulatory peers - and those who wrote the NCUA RBC rule are still very much in place ever poised to act yet again. The NCUA RBC rule failure was universally ridiculed and NCUA was forced to recant and rewrite the rule on a professional, economically and logically sound basis - but only after a year of stonewalling and arrogant defiance by the NCUA senior staff.
So, enjoy your stroll down Memory Lane today as the blog is refreshed about every hour with blasts from the past. But don't miss this one critical fact...
IN 2014 THE HIGH PRIESTS AT NCUA POINTED A LOADED GUN AT THE HEAD OF THE CREDIT UNION MOVEMENT ...
... AND THEN RECKLESSLY PULLED THE TRIGGER.