The Credit Union National Association (CUNA) yesterday denounced heretical statements by National Credit Union Administration (NCUA) Chairman Debbie Matz, as she strayed from the dogma of credit unions being member-owned.
In response to questions regarding NCUA's budget from Representatives David Scott (D-GA) and John M. "Mick" Mulvaney (R-SC) during a congressional oversight hearing on July 23, Debbie Matz stated that she did not believe that credit unions were necessarily representing their members, when credit unions asked NCUA to cut its budget.
CUNA decided that this blasphemy could not go unchallenged.
In a statement from Jim Nussle, CUNA's CEO and president, said: "I certainly hope that NCUA Chair Debbie Matz misspoke at the hearing today. If she didn’t, it’s outrageous that Chair Matz would tell Congress she does not believe credit unions represent their members under the respectful questioning of Representatives Scott and Mulvaney. I can’t believe I need to remind her that the nation’s credit unions are member-owned."
It is obvious that CUNA is hoping that Matz will recant from her heresy that credit unions do not necessarily represent the interests of their members.
But I need to remind CUNA, just because a credit union is member-owned; it does not mean that management's interest is aligned with the interest of the owners. In economics, this is called the principal-agent problem.
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Apparently with Debbie there, we don’t need to represent our members. She already knows what is best for them.
ReplyDeleteAnd Cuna, Nafcu, leagues and NCUA are focused on THEIR "best interest" ... And it's not credit unions or their member's!
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