NCUA Town Hall Meetings, Credit Union Action & You

The NCUA (National Credit Union Administration) Town Halls announcement was made months ago, during the NCUA’s Webcast: The Corporate Credit Union Update. The credit union movement had much time to prepare for this opportunity for direct communication with the industry regulator and policy-maker. Then, why does it seem like we have the least momentum right now? Where did the interest go in having a say on the changes in the credit union system?

Why are so many credit union professionals tuning-out at such a pivotal time?

It seems credit unions built up indifference to the uncertainty surrounding the corporate credit union rescue. Credit unions have taken the first NCUSIF (National Credit Union Share Insurance Fund) stabilization expense in stride. A sliver of transparency in regards to the PIMCO Analysis of the corporate credit unions, US Central and WesCorp, was permitted after a FOIA (Freedom of Information Act) request. A new Chairwoman, Deborah Matz, was appointed for the NCUA. She previously held a position on the NCUA Board when in 2002 she cast a lone vote of dissent against the current regulations of the corporate credit union system.

Perhaps, these initial improvements on the handling of the corporate credit union crisis have caused many credit union professionals to internalize their fear and concern?

Yes, there are many gray-areas still clouding the decisions of the credit union industry. The line of credit extended to the NCUA in the corporate credit union stabilization law technically has a limit of $30 Billion under exigent circumstances. So far, the NCUA has only drawn-down $2 Billion. How many credit union executives are currently making strategic decisions with the albatross of future write-downs hanging around their neck?

Fear of future write-downs could not have come at a worse time, strategically speaking.

Today is the day for credit unions to expand their market-share into areas left behind by for-profit banks. Right now is the time to cooperatively invest in America’s future and seed economic growth in the ashes of the wildfires from the credit and housing crisis. It’s not like credit unions have a lack of dry powder (capital reserves)! The recent 2Q-09 Credit Union Trendwatch painted a well-capitalized picture of overall credit union financial data. Record levels of membership and share account growth are currently being realized.

The credit union industry reminds me of Clark Kent; dependable, helpful, loyal, informed and caring. But, what is stopping credit unions from realizing their truest potential and changing into Superman?

Some of you reading this post may think I’m trying to “stir-it-up” in the credit union industry and attract attention through controversey. But, I am only attempting to persuade the decision-makers and loyalists in the credit union movement to take pause, analyze their situation, form an opinion, and then join the discussion on the future of the credit union industry.

During the throws of the Great Depression, our parents, grandparents and great-grandparents had the wherewithall to pull together the foundation of our modern credit union system. They literally saved the day with farmers and laborers all across America becoming member-owners of their own financial institution; masters of their own financial destiny.

We will be dishonoring that legacy if we do not treat the current economic catastrophe with that same level of seriousness.

It’s time to band together and share information. It’s time to pool resources and build upon eachother’s successes.

It’s time to volunteer to attend a NCUA Town Hall and engage the regulator with your questions, concerns and ideas for the future of the credit union movement.

What legacy do you want credit unions to pass on to the next generation of members?

What are you waiting for? Volunteer already!