CU Times and Journal both are reporting the current debacle was caused, in some great part, by NCUA. NCUA's reaction to the GAO report ... "Yes Sir, your right... good job in seeing that. We are terrible at regulating!". You see, when you have an appointed job... there is no need to succeed. It's all about being "right" and "in charge". Well friends, if you thought the NCUA lion was awakening and causing cu's grief up to this point..... As the man said: "You ain't seen nothing yet!" NCUA just got their walking orders to take an unrestrained crunch on CUs actions. The are now free to solve 50 of the next 5 problems you have (that's 5 actual issues, and 45 perceived issues identified by NCUA).
And who are these "super-smart" doers of good that come to visit our offices? Why 20 year old's who "know everything"! Everything about credit granting, compliance, history,... well everything. Why, they've been through the 3 week intensive course led by other "seasoned" NCUA examiners... So, you know they have tons of experience to draw on when they make their "recommendations" on how to improve your shop. They are smarter than you and know more about cu's than you do. That's right! Any you know how they know this? Why, NCUA told them so!
Problem is, if you happen to be a smaller cu... those recommendations are to - MERGE. You see, if your only tool is a hammer, all your problems look like nails. Low on income - MERGE, seen higher than normal delinquency - MERGE. And NCUA is SOOOOOOOOOOOOOO much better at watching over the larger cu's, like WesCorp, right?
Forget risk Management.... we are now going to be in full-time hard core risk AVOIDANCE.... right up to and including the demise of your credit union. You thought it was tough to make a buck before? Try avoiding ALL risk and making even $0.01 ---- Well, after assessments.... "How much capital do you have? Send it!"
Our members deserve a better regulator than what they have been forced to endure!!!!
Unfortunately, it's only going to get worse! We are really going to let the folks who caused the problem be in charge of fixing the problem.... Congrats! We are living a punch-line!!!!!
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If the federal government civil service protected folks could do your credit union job they would be working at your credit union. They don't have the brains to be in credit union management at any level. Instead they come into your credit union and tell you what to do, how to do, and when to do. And you must submit. If you don't submit they fire the CEO and Board of Directors under the authority of SAFETY & SOUNDNESS. You have no recourse. No one regulates the regulator. You cave in. You submit. You surrender. The real risk to credit unions is the NCUA. How can my credit union OPT OUT of the NCUA?
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