Sunday, July 17, 2016

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

This "stuff" is making
my head hurt !!

Realize that bombarding you with a history lesson (but remember we're talking about "history" which occurred just last year!) on the RBC meltdown was way too lengthy!  Sorry, but as they often say :

"It takes a long time for the truth to catch up with a lie".

To summarize

We've seen that NCUA's
"Looked like a Croc!"
staff-sponsored risk-based capital (RBC) rule: 1) gutted the competitiveness of credit union lending and investments, 2) added substantial, unnecessary financial costs to credit union members, 3) underhandedly attempted to rewrite federal law as it applies to credit union "net worth" statutes, and 4)
effectively "gave the finger to Congress" and our Constitutional system of "checks and balances" (other than that the RBC proposal was a work of "great" merit!).

"Untruth and Consequences"
But, let's stop with the whining and cut to the chase. NCUA's senior staff was - after an unnecessarily expensive, time-wasting, politically embarrassing two year outcry by the entire credit union community - forced to recant and rewrite the RBC rule. The final RBC rule which passed in 2015 was realigned with professional national and international regulatory practices... but it was only done over the stonewalling, "we-always-know-better-than-you", infuriating noblesse oblige of the NCUA senior staff.

And, where is "the leadership" who "crafted" the disaster called "RBC1"? And, do you think... 

... they've changed their minds... or their "attitude"?

Or should all be forgiven because they just did not know what they were doing?

(Great choices, heh!?!)

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