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...
DOES NCUA IN ITS ROLE AS MANAGER OF THE NCUSIF HAVE A FIDUCIARY RESPONSIBILITY TO CUs?
And why is the question crucial to CUs?
... 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?
ACCOUNTABILITY - COMPETENCY - TRANSPARENCY