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| Mr. Dan Berger, CEO NAFCU |
WILL YOU AND NAFCU FIGHT FOR FAIRNESS, EVEN IF FEDERAL CHARTERS ARE NOT PAYING THEIR FAIR SHARE?
WE'RE LOOKING FOR....
NATIONAL LEADERSHIP..... WHERE DO YOU STAND MARTIN LUTHER?
Mr. Rendell Jones, the CFO of the NCUA, recently provided the NCUA Board with a quarterly update on the performance of the cooperative share insurance fund (NCUSIF).
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| ... and fiscally not nice!!! |
NCUA has long mismanaged the NCUSIF, through its abuse of the overhead transfer rate (OTR) provision. The OTR provision permits part of the NCUSIF earnings to be used to cover NCUA's ever escalating operating costs. Milking the NCUSIF weakens its purpose and helps hide NCUA's unjustifiable budget bloat from direct, above-board, public scrutiny.
When the OTR was first introduced around 1984, it was fairly estimated that approximately 25% of the NCUA budget could be attributed to the insurance function. Under the current regime, that sense of fairness is no longer a major concern and the OTR percentage continues to soar - 59.1% in 2013, 69.2% in 2014, and 71.8% in 2015.
This is what one should expect when an independent federal agency fully exercises its "independence" - and when Congress appears to have abdicated its oversight responsibilities.
To make all this just a little bit more ridiculous (or dishonest, depending on your view of NCUA's competence), NCUA has willfully used the NCUSIF OTR to not only conceal its run-a-way budgetary mismanagement, but to also overcharge state-chartered credit unions for insurance coverage, to fiscally cripple many state CU regulators, and to unjustly "enhance" the federal CU charter by reducing FCU regulatory fees by almost 20% in the last two years alone.
Here's how you know "the fix is in"...
Do the arithmetic for me on this little financial equation:
Soaring NCUA budget + escalating OTR (71.8%) =
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| D.C. math!! |
for federal CUs only.
So, while NCUA's budget has jumped 16% from $240 million to $280 million and the OTR has jumped 21% from 59.1% to 71.8%; regulatory assessments on federal credit unions have been lowered by 19.3%!
So, while NCUA's budget has jumped 16% from $240 million to $280 million and the OTR has jumped 21% from 59.1% to 71.8%; regulatory assessments on federal credit unions have been lowered by 19.3%!
Y'KNOW THIS JUST DOESN'T ADD UP EVEN FOR DEE-CEE!!
"Somebody" should be seeing "red"!
2 comments:
Given the last 8 or 9 years of tribulation foisted on us due to "the fund" isn't it time to recognize that the real problem is the NCUSIF. Its brought the biggest losses ever seen by us and is used by the tyrannical bullies from D.C. who will do anything and/or say anything to "protect the fund"! Because of misguided efforts to PTF aren't credit unions quickly becoming a footnote in history? If it continues as is, without true separation of the insurance and regulatory function it will be more of the same as member dough is used to whitewash the regulatory ineffectiveness whose focus is on protecting the source of their robust paychecks. A beady eyed overseer of the fund whose responsibility is the judicious use of credit union dollars by demanding reasons for use and supervising activities to recover used funds would make us feel more comfortable. This would than allow NCUA to spend more time on the real issues of the day like Interest Rate Risk and Risk Based Capital and maybe transparency in the budget process all of which they seem to struggle with. It's time to wonder about what credit union's would look like with no Federal Insurance or perhaps just private insurance. Can it be any worse than what we face today?
http://nascus.org/OTRresources/NASCUS%20NCUA%20Reorg%20Paper%20Final.pdf
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