Thursday, February 2, 2012

On Walls

In a passionate defense of charter choice and the end of obstructionism, Henry Wirz, the President and CEO of SAFE Credit Union (North Highlands, CA) wrote in a Credit Union Times Viewpoint column (January 11, 2012): "Any movement that has to wall in its members will fail."

This statement caused me to think of the former East Germany. It built the Berlin Wall to keep East Berliners from fleeing to West Berlin and freedom.

But this former Soviet Bloc country decayed from within and failed. The Berlin Wall was torn down. Unfortunately, many former East Germans paid a heavy price due to the years of oppression.

NCUA appears to be following the same example. This agency has erected regulatory barriers that seeks to wall in credit unions it regulates.

But by limiting credit unions ability to exercise their right of charter choice, NCUA has no incentive to innovate or change. This will eventually impose a heavy cost on credit unions.

Chairman Matz, tear down this wall.
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