Search
 
Commentary

Treasury Out to Reform NCUSIF

Consultant Marvin Umholtz responds to Executive Editor Heather Anderson's column on FinCEN and the NCUA.

By Marvin Umholtz | Updated on June 11, 2015
Written with a healthy dose of humor that made me SMH, Executive Editor Heather Anderson’s column titled “SMH at FinCEN and the NCUA” appropriately criticized the U.S. Treasury’s Financial Crimes Enforcement Network’s embarrassing leak about at-risk credit unions published in the Wall Street Journal. Her column also exposed an important political dynamic that should be of great concern to officials within the credit union industry. The U.S. Treasury has a long-held agenda that includes reforming, and restructuring, the NCUSIF.

Equally disturbing was that, whether intentional or not, the U.S. Treasury apparently leaked the so-called confidential report to the WSJ, while neglecting to include the NCUA in the loop.  Financial Stability Oversight Council member and NCUA Chairman Debbie Matz would be justified in chiding FSOC Chairman and U.S. Secretary of the Treasury Jack Lew concerning the matter. After all, among its duties, the FSOC is charged with identifying and managing systemic risks, and protecting the financial system from terrorists and drug lords is a national priority. As Ms. Anderson alluded, the FinCEN’s faux pas could very well have been deliberate.

Anderson also suggested that “the NCUA continues to focus so much on protecting the share insurance fund while focusing too little on the industry’s reputation risk that arises from fraud.”  Accurate again, yet it was probably an understatement. The NCUA’s Fiscal Year 2015 Overhead Transfer Rate was 69.2%, suggesting that the NCUA is really a federal deposit insurance fund that runs a side business doing a few other things. Take away the deposit insurance function, and little remains but unnecessary costs.

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including Law.com and GlobeSt.com.

Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Recommended Stories

Why Your CU Needs a Chief Data Officer

Why Your CU Needs a Chief Data Officer

Henry C. Meier, Esq. |

There are too many data-related questions to answer and legal issues hanging around to not have a data chief at the helm.

Credit Union Times

Join Credit Union Times

Don’t miss crucial strategic and tactical information necessary to run your institution and better serve your members. Join Credit Union Times now!

  • Free unlimited access to Credit Union Times' trusted and independent team of experts for extensive industry news, conference coverage, people features, statistical analysis, and regulation and technology updates.
  • Exclusive discounts on ALM and Credit Union Times events.
  • Access to other award-winning ALM websites including TreasuryandRisk.com and Law.com.

Already have an account? Sign In Now
Join Credit Union Times

Copyright © 2024 ALM Global, LLC. All Rights Reserved.