Follow up comments from Randy Karnes, Chip Filson, and Vic Pantea on the OTR dilemma
Last week, Vic Pantea wrote a great piece on the OTR calculation methodology and the anticipated response from the NCUA to the Request for Comment.
I love when we have guest writers and Vic nails it here. What do you think? My biggest worry is that CUs are not serious about this. Heck I am not sure they are even mildly interested in it.
Years ago I sat in a CUFSLP meeting with 30+ leaders of the largest CUs in the business and the response to the call to comment and influence the OTR was muted, and best represented by a casual comment that “they will get their monies either way…let’s pick bigger battles.” Sooner or later the NCUA budget gone awry will get CU leaders’ attentions and maybe someone will agree with Vic.
I agree. The issue is even more critical as NCUA plans to merge TCCUSF into NCUSIF. This will give NCUA first dibs on the $2-4 billion excess funds expected to be available after the shareholders of AMEs receive their $2 billion or so in recoveries.
Randy’s comments about the meeting at CUFSLIP isn’t surprising when we look at the weak response to the Request for Comment last year. As a credit union owner I’m just disappointed that the credit union professionals and volunteers who have a responsibility to wisely manage our shared capital don’t seem to care about how the NCUA is being managed, to the extent that even when they’re asked to comment about the most significant agency funding mechanism, all you hear are crickets.
This problem starts with the nature of any governmental agency but is inflamed by our own abdication of our individual responsibility to participate in the process. It’s obvious that to just say “CUNA will take care of this” or “NAFCU will deal with this” is a cop out.
Yes, Chip is correct that this problem will be magnified by the pending decisions about TCCUSF and yet more time, effort and column inches are wasted on worrying and writing about something minor like CECL. Ridiculous!
Tell us why we’re wrong!