NCUA Chairman Debbie Matz in an article appearing in the Boston Globe has inappropriately weighed in on HarborOne Credit Union's decision to seek a mutual bank charter.
The article quotes her as saying "[t]here is no reason to think that members will be better served by a bank than a credit union."
She makes additional comments regarding HarborOne's justification for seeking a mutual bank charter. She points out that the credit union is not near its member business loan cap and the credit union could petition its state regulator for a larger community charter.
NCUA Chairman Debbie Matz also seems disappointed that there is not organized opposition to obstruct this charter conversion. It almost appears that she is trying to incite opposition.
While Chairman Matz may not like a credit union opting for a mutual savings bank charter, it is the law.
Credit unions and their members have the right to choose whether they want to remain credit unions or to become banks.
As the regulator that oversees this process, NCUA needs to be impartial and Chairman Matz should have said no comment -- keeping her opinions to herself.
Read the Boston Globe story.
This Chairman does not know how to keep her opinions to herself. She has surrounded herself with staff who just say yes and let her put her foot in her mouth. How she is running the agency is one of many reasons credit unions are upset.
ReplyDeleteKeith, you must not be on top of all the good news. Matz is feeling perky enough to expand her authority due to all the good news in cu supervision:
ReplyDeletePublic airing of dirty laundry in north Carolina.
Muscling to a no decision on the corp America/Louisiana corp merger.
208 assistance for dead credit unions.
Hiding losses at corp CUs.
Over 300 LUA that aren't made public.
Hundreds of DORs not followed up on.
Town halls that no one goes to.
Oh, a and then there is the IG report on Norlarco loans
Can't forget the GAO report on the corporate credit union MESS.
Things are so good that she,s going to snub her nose at the legal process and prejudge the member,s vote.
I run a credit union and I for one am appalled in how this Chairman can be so bold to say the things she does in this article. We know Matz and her staff are trying to run the state programs and all of her town hall webinars are for show nothing ever gets results. It also would be nice if she stops wasting our money.
ReplyDeleteI would like to know how the Chairman can reconcile her statement with the the NCUA's regulations that require converting credit unions to make "[A] clear and conspicuous disclosure that the National Credit Union Administration does not approve or disapprove of the conversion proposal or the reasons advanced in support of and the reasons against the proposal." (Section 708a.104(7))Based on her statement, how can one believe that the NCUA's regulations relating to charter conversions or that its review and/or processing of the vote is anything but biased - and it comes directly from the top.
ReplyDelete