Monday, December 19, 2016

Simple Question... Time For An Answer

It would appear to most experienced and informed observers that the recent investment of  CU share insurance deposits on behalf of the NCUSIF has been thoughtless - to the point of reckless disregard of prudence. 

But those very same capital market folks, who were dead-certain they understood the Corporates, remain in place today and their "Titanic self-assurance" remains undaunted by their mishaps with icebergs. After all: "Ice Happens!"

But more than enough has been "bitched,
griped, and whined" about the mismanagement of the NCUSIF, whether it's inept investments, excessive OTR draw downs "justified" by "manufactured cost accounting analyses", or purposeful misrepresentation of FCU regulatory fees; it's time to stop. Why?

Because, if the NCUA, as manager of the NCUSIF, does not have a fiduciary responsibility  [Chairman Metsger indicates that NCUA does have an FR!] to the CU depositors, who own the Fund, then NCUA - right or wrong - may do with the Fund as it sees fit - then everyone needs to hush and move on.

Wouldn't it be appropriate for one of the major trades - NAFCU, CUNA, NASCUS - to seek a formal, public legal opinion on this question...


And why is the question crucial to CUs?

Big Bucks!

... because lack of accountability, competency, and transparency at the NCUSIF may cost your
members $300 to $600 million next year.

What do you say Dan Berger, Jim Nussle, Lucy Ito?



Anonymous said...

Won't end with $3-600 million.
Not when you consider the medalliongeddon problem.

No game films being watched on duke street.
Trades associations bask in the lack of F ACT.

That's why it's ...

Or suffer.

Dennis Moriarity said...

The people that should do something will do nothing because they don’t care as long as the trough stays open and accessible to them. When serious things happen and the people that are hired to do something don’t do anything then it begs the question. Why are we supporting these bums? If credit unions continue to fund them with dues dollars they will gladly take it, pay themselves royally and oversee the eventual demise of the movement.
We have no base…. People that believed in the credit union movement are becoming but a memory. Our greatest failing has been our inability to develop an educated force of CREDIT UNION professionals that understood the reason for and continuously reminded others of our reason for being. The consequences are obvious as the people that have transitioned into the jobs have concentrated on ways to enrich themselves by discriminating against their own members in developing “levels of membership” or programs that “risk base” rates. Most of these people are happy with what’s going on for them and see no reason to “rock the boat” because it might upset their applecart. It’s easy for them to talk the talk because they have no intention of walking the walk.
Like it or not the future looks pretty bleak for credit unions especially the ones located in specific geographic locations or still serve a common bond. Every piece of legislation enacted to improve FOM has been another nail in the coffin of smaller credit unions.
So instead of complaining about NCUA isn’t it time to just fold that tent and move credit unions into another regulator? Isn’t it time to realize the bad guys (at least those in charge) outnumber us and will fight tooth and nail to maintain the atmosphere they survive best in.
As the movement swirls down into the drain what remains is not worth saving when compared against the history of credit unions when people gave a damn. I hate to say it but our last constructive act for our members might be helping to end the charade.