ABA Praises Harper’s Appointment as Chairman

Todd Harper’s appointment as NCUA board chairman received a rousing endorsement from an unlikely source Wednesday — the American Bankers Association.

Harper is a “highly qualified, deeply experienced regulator at the helm of the industry’s supervisor and federal insurer,” the ABA said on its “Explore Credit Unions” website.

The ABA’s ownership of that website, which is extremely critical of credit unions, was shrouded in secrecy until CU Times identified the trade group as the owner. Subsequently, the ABA posted its name on the website, which recently has been advertising on Facebook.

President Biden earlier this week appointed Harper, a Democrat, as chairman of the NCUA board. He replaced Board Member Rodney Hood, a Republican, as chairman.

The ABA said that Harper is a wise choice to lead the agency and by all accounts will take his job seriously.

That’s where the praise ended.

“All too often credit union regulators become industry cheerleaders rather than responsible watchdogs,” the bankers said. The group went on to say that large credit unions have been relentless in their pursuit of assets and members, and will continue to do so as long as their “regulator does not force them to play by the rules and live by the spirit of the Federal Credit Union Act that cemented their status as mission-minded, purpose-driven not-for-profits.”

The ABA went on to urge the NCUA to “stop large credit unions from exploiting field-of-membership requirements in their hunt for assets, from ignoring their responsibilities to serve low-income and underserved communities as their charter intended, from taking on risky and potentially systemically damaging debt from outside investors, and from the most blatant form of mission-creep – buying up tax paying banks.”

The group said that Harper has been critical of some recent NCUA proposals that were adopted over his objection and called on the new chairman to focus on consumer protection and benefits, safety and soundness, and adherence to the littler and spirit of federal credit union laws.

Ironically, Sen. Sherrod Brown (D-Ohio), the likely chairman of the Senate Banking Committee, this week praised Harper for some of the same reasons, saying that the new chairman has a deep understanding of credit union issues, and adding that he has fought for strong consumer protections and capital requirements.