Based upon a February 23 letter NCUA Chairman Debbie Matz sent to Eric Sandberg of the Texas Bankers Association (see below, click to enlarge the image), beyond removing culpable management and the board of directors, NCUA is not in any hurry to resolve this failed credit union.
Chairman Matz wrote that NCUA does "not have any plan to merge this credit union at this time and ... has set no timeframe for completing this resolution process."
So, Texans will for the foreseeable future be among the walking dead.
So what exactly was the point of Sandberg's letter? I understand there may be a bank or banks in Texas interested in purchasing some or all of Texans' assets. If that's the case, it doesn't make sense for the head of the Texas Bankers Association to take potshots at the credit union regulator. I don't see where the FDIC or OCC is providing any more effective regulatory oversight given the track record of bank failures and bailouts since 2008. Since when do bankers feel they have the God-given right to criticize how we do things. Maybe they should tend to their houses which have cost taxpayers billions instead of spending time worrying about credit unions that have cost taxpayers nothing.
ReplyDeleteThe "God-given right" is actually a Supreme Court Decision from the 1990s that gave the banks "Standing" to complain to prudential regulatory authorities. Equally the Court affirmed credit unions are in the business of "banking" and therefore have the rights to use of that term, and by extension credit unions have the standing rights to the full array of powers, products and services of American banks. The SCOTUS decision looked bad for credit unions at first, but soon after worse for banks that lost far more than they realized.
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