NCUA Oversight Change Needed
The current financial and political climate of this country and the credit union industry demands that the voice of the industry clearly state our absolute dissatisfaction and vote of No Confidence with the current policies and practices of the current governing administration, the NCUA Board of Directors. The ever decreasing transparency of the NCUA Board of Directors, including their budgeting and insurance assessment processes; the current lack of Congressional oversight; effectual auditors’ ever increasing failure to perform under NCUA’s watch care; and the oppressive handling of credit union assets, most notably the National Share Insurance Fund, require immediate attention and action by Congressional Representatives. As the industry, we seek the following remedies immediately:
1. That effective immediately the NCUA Board of Directors be required to have no less than two operating credit union industry professionals, (I.e. Credit Union CEO, CUSO CEO or Corporate Credit Union CEO), elected by their Peers of equivalent, to serve for a period of no longer than five consecutive years.
2. That effective immediately NCUA’s oversight of the National Share Insurance Fund be removed and supervision be established under a separate Board of Directors; which has both Congressional appointed and credit union industry professional members, (I.e. Credit Union CEO, CUSO CEO or Corporate Credit Union CEO). Industry professionals, elected by their Peers of equivalent, to serve for a period of no longer than five consecutive years.
3. That effective immediately, Congressional oversight be required for the NCUA Board of Directors.
4. That effective immediately, the NCUA Board of Directors be required to permanently return to an annual open budget hearing format. In 2001, under then Chairman Dennis Dollar, such annual open budget hearings were held. Such open hearings were discontinued under now Chairman Matz.
5. That automated reporting tool specifications be defined by appointed industry professionals, which can assess financial strength and risk assessment in an automated way, thereby providing early warning signs for auditors to target and whereby financial efficiencies can be gained in auditing oversight; and that such a tool format be required use by all credit unions through their data processing system by June1, 2012.
We do not believe adding more auditors will provide any remedies to current deficiencies. In the words of our Forefathers, “But when a long train of abuses and usurpations, pursuing invariably the same Object evinces a design to reduce them under absolute Despotism, it is their right, it is their duty, to throw off such Government, and to provide new Guards for their future security.” It is clear that the recent actions of the NCUA Board of Directors can be defined as abusive, usurping, designed to reduce the industry, which we hold dear, under absolute Despotism (A system of government in which the ruler has unlimited power). These grievances are submitted by the voice of the industry; and as is our right, the signers of this petition respectfully require immediate response from such Congressional Representatives.