Credit Union Times: There was a provision in the Terrorism Risk Insurance Act that was recently reauthorized, which required the president to nominate a person with a community banking background to the Federal Reserve board.
Do you think someone with a credit union background should be on the Fed board as well?
Aguilar: I do. I think many governmental bodies would benefit from hearing different perspectives.
We’ve seen that within the California regulatory structure, the California Department of Financial Institutions had a deputy specifically related to credit unions.
I think institutionalizing that and making sure that you are hearing different perspective from an important industry is always a good thing.
However, at this time, I don't believe it is appropriate to have someone with credit union background on the Federal Reserve Board.
Comparing the California Department of Financial Institutions to the Federal Reserve is a faulty comparison. The California Department of Financial Institutions supervises state chartered credit unions. State chartered credit unions are stakeholders of the California Department of Financial Institutions. On the other hand, the Federal Reserve does not examine credit unions.
Also, many of the regulations that impact credit unions that were formerly under the jurisdiction for the Federal Reserve have been transferred to the Consumer Financial Protection Bureau.
Moreover, credit unions are able to share their perspectives with the Federal Reserve as several credit unions currently belong to the community depository institution advisory council.
A final thought, do credit unions think that a person with community banking background should be on the National Credit Union Administration Board?
Read the story.
The FOMC sets short term interest rates and influences long term rates in the money markets that effect every consumer banking service. Credit unions should be part of The Fed Board's assessment of reality both before and after they act.
ReplyDeleteBankers are qualified to be on the Fed Board but credit union officials are not? Are you really going with this argument?
ReplyDeleteI'm not saying credit unions are not qualified.
ReplyDeleteI'm saying that the Fed does not regulate credit unions.
Oh, by the way, bankers have been on the NCUA Board. Norm D'Amours is a recent example.
ReplyDeleteCredit Unions want everything banks have but just don't want to pay taxes.
ReplyDeleteThought you'd realize that by now.
They earn that exemption everyday by being so distinctly different than banks....
They make loans to consumers, oh so do banks.
They market all over the place, oh so do banks.
They offer competitive rates, oh so do banks.
They have plenty of $500m asset credit unions, oh so do banks.
Oh, their ownership is different...they don't vote as bank shareholders do. They haven't any investment dollars at risk, as bank owners do. They don't vote for board members, as bank owners do. They needed a UST bailout, just like banks.
We can't wait, at our CU,moor Congress to deal with the distinct difference so we can move on past the CHARADE.