First regulators put the squeeze to your credit unions and now the squeeze is on credit union executives. Multiple financial services regulators, including the NCUA, are required under the Dodd-Frank Act to curb executive compensation packages that could create a tension between personal interests and the long-term safety and soundness of the financial institution overall.

The goal of the regulation absolutely makes sense. But this is the job of the boards of directors and not the federal regulators, particularly as it pertains to credit unions. The board's entire purpose is to ensure long-term viability of the credit union for its members. The legislation on this is bad public policy from the start. It represents further infringement of the government into free-market enterprise.

The regulation also attacks a symptom that took place by some bad actors rather than the root of the problem. Many things went wrong causing the current economic crisis, including lack of oversight of unregulated entities like mortgage brokers and the conflict of interest at the ratings agencies. And, some were outright breaking the laws and regulations already in place. The idea that credit union executive compensation packages led to the crisis is ludicrous.