NCUA is fine with a “Do as we say, not as we do” policy.
Well, maybe I should ask “Does anybody in the President’s office ever think about the leadership he has assigned to oversee the NCUA board?” I doubt it. Would anyone in this administration really care about a 13.1 million dollar credit union. I doubt it. I am not sure that anybody on the board of the NCUA cares about a 13.1 million dollar CU either – and they should care. Not because of the agency’s duty to guard the insurance fund (a passion for their positive liquidation capabilities). They should care because they owe it to the owners of every credit union to foster CU success no matter the size of a balance sheet (they’re missing passion for their contribution to the safety and soundness of our industry).
What has put me on this tirade? Chris Howard’s recent posting titled “California Data Breach Exposes NCUA Hypocrisy.” Have you read it? I am sure you noticed the reporting on the breach at Palm Springs FCU in the trades, but did you connect the dots like Chris is here?
California Data Breach Exposes NCUA Hypocrisy
The fact an examiner jeopardized sensitive data from $13.1 million Palm Springs FCU is appalling at so many levels.
Just last week, I listened to NCUA Chairman Debbie Matz wax self-righteously about data security and the danger posed to credit unions by third-party data breaches.
“Throughout this year, credit unions and their members have suffered from data breaches they did not cause,” Matz said. “When breaches occur … the responsible third parties should be held accountable.”
Turns out she was talking about the NCUA…
Some of you might be thinking, “Randy, the NCUA has a long history of events that seem to equal “do as we say, not as we do” moments; why comment on it here?” Because I have moved from believing this is an embedded SOP at the agency common to most regulators, to the belief that the current NCUA Board and Ms. Matz now condone it, and might under the leadership of Ms. Matz become better at it! I am speaking of a board-endorsed, board-led spin, and a blind eye to the NCUA’s arrogant hypocrisy as the rule not the exception in handling credit union industry issues. And I am wondering if it isn’t time to ask the President directly for some relief, some evidence that his administration cares about the leadership at the NCUA, cares about members who work to build community organizations. I am wondering if it isn’t time to ask the President to ask Ms. Matz to step aside so we might believe we can build a better process with the NCUA. It is time for examination innovation, and I doubt Ms. Matz believes anything is needed at all–SOP is fine with her! Tell me why I am wrong!