Guess while we're looking at NCUA's senior staff presumptuousness with FOIA, might as well look at a classic example of why many folks [like Dennis and Bill] suggest its time for credit unions to ask that the NCUSIF be dissolved and merged into the FDIC. [But of course, let NCUA continue as the federal charter regulator and resize to live off its regulatory fee income.] Let's go back to the NCUA 2016 Chief FOIA Officer Report which we mentioned in "FOIA... Part 6"[here's the link]. This time take a look at # 7.
THE 2015/16 BRAIN TRUST AT NCUA... ACCOUNTABLE - COMPETENT - TRANSPARENT?
As you will recall, the Chair of NCUA was handed her head in a hand basket at the infamous July, 2015 House Financial Services Committee hearing.Never has a performance by an NCUA official done so much to diminish so profoundly the reputation of the Agency - and all credit unions! The Chair is now gone and credit unions are very fortunate (cross your fingers for the future!) to still be around. The crux of that hearing was the painfully proved
fact that NCUA - with NCUA OGC complicity- inappropriately redacted - using FOIA as an excuse- comments from a PriceWatterhouseCoopers report which simply suggested that NCUA improve its methodology and transparency in calculating the NCUSIF overhead transfer rate (OTR). [That idea was not exactly a "trade secret" to anyone familiar with the Agency!] How did NCUA justify substantially redacting that 2011 PWC report?
Well again, it was possible because NCUA used its "discretionary authority" under the FOIA to withhold the information! But of course during the House Financial Services Committee bloodbath, the NCUA acknowledged that its FOIA redaction of the PWC report was inappropriate - right? That the information should have been public all along - right? That's what the Chair said under oath - right?
So, let's drop back and look at what NCUA's Chief
Let credit unions eat it!
FOIA officer says in her 2016 report (see link above) about the PWC report info on the OTR calculation. You'll note that the release of the OTR info is cited by the Chief FOIA Officer in # 7 as an example(!) of NCUA graciously, willingly, and voluntarily(!) using "its discretion" to let credit unions and the American public have access to information to which we were never entitled! In other words,...
The NCUA staff still claims it didn't have to release the information!
[Perhaps NCUA felt coerced into being reasonable by the cocked gun Representative Mulvaney held to their head!]
Shucks, we just did it out of the goodness of our hearts folks.
[NCUA "FOIA discretion" is in fact NCUA "FOIA arbitrariness".]
... and that entrenched attitude of arrogance is why some think they all may need "to go".
ACCOUNTABILITY - COMPETENCY - TRANSPARENCY
3 comments:
Anonymous
said...
Without Transparecny there can be no Accountability nor therefore Competence. To achieve Transparency the subject (NCUA) simply chooses to be so, or hides. Since they are hiding you need Feedback based on FACT.
What is the total dollar's spent by NCUA each year for the past 10 years. For each of the 10 years what was the number of credit unions that were federally insured and the total assets? Divide to get the credit unions and assets per dollar spent. Graph this. Graph the dollar's per FCU also to show the ludicrous nature of the OTR. Now do it for FDIC. COMPARE. What's it look like?
You need to take the facts you've developed and add this and begin plastering congress, Wall Street journal, CU times, American banker. Credit Unions seem reluctant to hold NCUA accountable and they don't hold NAFCU and CUNA accountable.
The business case to remove the NCUSIF from NCUA is both compelling and overdue as is the need to deal,with the OGC.
The problem is the amazing internal control problem that having NCUA Board control both NCUSIF and the NCUA Budget. The NCUSIF is supposed to be an insurance pool covering potential losses of Federally insured credit unions. It is not intended to be a honey pot for NCUA to steal from without cause to cover their profligate spending! The Staff at NCUA get to steal and spend!(Do you see the internal control conflict?) Where is the justification for the transfer rate? How many credit unions pay a bill without proper documentation and justification? This would be a different situation if an independent Insurance Fund with proper fiduciary duty to the credit unions had to sign the check to pay NCUA.
The senior staff at NCUA steals more from credit unions than the total of armed robberies! What is really alarming is that the senior staff at NCUA expects a bonus for their management of the Fund!
First comment above is a good idea. It should be telling to see the dollar's spent by NCUA per credit union and per total assets for the last 10 years as total credit unions declined. Especially FCUS.
3 comments:
Without Transparecny there can be no Accountability nor therefore Competence.
To achieve Transparency the subject (NCUA) simply chooses to be so, or hides.
Since they are hiding you need Feedback based on FACT.
What is the total dollar's spent by NCUA each year for the past 10 years.
For each of the 10 years what was the number of credit unions that were federally insured and the total assets?
Divide to get the credit unions and assets per dollar spent.
Graph this.
Graph the dollar's per FCU also to show the ludicrous nature of the OTR.
Now do it for FDIC.
COMPARE.
What's it look like?
You need to take the facts you've developed and add this and begin plastering congress, Wall Street journal, CU times, American banker.
Credit Unions seem reluctant to hold NCUA accountable and they don't hold NAFCU and CUNA accountable.
The business case to remove the NCUSIF from NCUA is both compelling and overdue as is the need to deal,with the OGC.
The problem is the amazing internal control problem that having NCUA Board control both NCUSIF and the NCUA Budget. The NCUSIF is supposed to be an insurance pool covering potential losses of Federally insured credit unions. It is not intended to be a honey pot for NCUA to steal from without cause to cover their profligate spending! The Staff at NCUA get to steal and spend!(Do you see the internal control conflict?) Where is the justification for the transfer rate? How many credit unions pay a bill without proper documentation and justification? This would be a different situation if an independent Insurance Fund with proper fiduciary duty to the credit unions had to sign the check to pay NCUA.
The senior staff at NCUA steals more from credit unions than the total of armed robberies! What is really alarming is that the senior staff at NCUA expects a bonus for their management of the Fund!
First comment above is a good idea.
It should be telling to see the dollar's spent by NCUA per credit union and per total assets for the last 10 years as total credit unions declined. Especially FCUS.
Comparing to FDIC makes sense.
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