Randy Karnes, President/CEO, CU*Answers

Can we look past the perceived failures of the NCUA and work with them?

In a recent email, CUNA praised the NCUA for the TCCUSF closure and the refunds starting in 2018. A great victory for credit unions, except some in my circle see it as the NCUA bilking the industry and its members by voting to increase the normal operating level to 1.39% and withholding too much.

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Some people do see it my colleague’s way, including me most of the time. And even when I give the NCUA the benefit of the doubt (like they need the money), I would rather them give credit unions all the money back, and then start assessing fees in separate justified transactions.

When I call on my better angels (and that is seldom when I think about the NCUA), I listen to the fact that the best way to change the NCUA is to work with them from the inside out. See that their overreach might be prudent, and sincerely believe that NCUA Chairman Mark McWatters is a change agent—a balanced, committed designer for better things, and that he has the political skills to move the ball. Unfortunately, I believe my better angels are optimistic to the point of being naïve.

“CUNA bets on what looks best as a lobbyist, not what might be right as a potential losing principle to stand on that might just one day be a winning long shot.”

–Randy Karnes

By now my better angels and I have watched the industry be crushed too many times by the reality that nothing seems to change from the inside out at the NCUA or most government organizations, and now I just wish we would burn it down and start all over—not deny everything, but just look hard at changes the NCUA would never consider unless its future were challenged. Risk moving to a new agency, risk uninsured financial cooperatives, and force a split between insurance and regulation and between federal insurance and state regulations.

So as to CUNA, the people who take credit for winning horses after the results are in, I doubt they would help any of this from the inside-out or outside-in. CUNA bets on what looks best as a lobbyist, not what might be right as a potential losing principle to stand on that might just one day be a winning long shot.

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I hear McWatters ignored credit unions’ comments on this topic if they were simply expressed opinions and not an argument worthy of his intellectual consideration. And if that is true, he has the intellectual awareness of a pinhead. We do not want to debate design with McWatters alone. We wish to debate results! Not the agency’s outcomes, but our members’, our owners’, and the communities’ results.

Pinheads did not start credit unions. Credit unions were founded by people who knew only a few things were needed: help those who join us in hopes of helping others. My better angels want to join McWatters in his efforts, but on other days I would only do it if he joined us in ours. Too bad I see those things so far apart.