On December 9th, 1984 a unique, one-of-a kind credit union event took place at the MGM Grand Hotel in Las Vegas.
The National Credit Union Examiners Conference was the inspiration of NCUA Chairman Ed Callahan. It reflected his belief that state and federal regulators had common purpose with the credit union community. While each had separate responsibilities their shared goals could best be accomplished through collaboration and continuing communication.
The Operational Context
This unprecedented national initiative was accomplished while NCUA was doing its “day job” overseeing 11,000 FCU’s and monitoring 5,000 state charters with NCUSIF insurance. The agency was in the process of completing an annual exam for all FCU’s for the third consecutive year. CLF membership, in partnership with the corporate system, included all 16,000 credit unions in its liquidity coverage.
The NCUSIF redesign was passed by Congress with complete credit union support. This structural change from cooperative principles created the strongest of all three federally managed funds-a fact still true four decades later.
The 1985 agency budget had been passed in the fall. It slashed spending by 4.9%. This spending cut enabled a third reduction in the FCU operating fee of over 20% for a total of 64% over the three yers. Moreover, it was NCUA resources that underwrote the conference including the attendance by all its field examiners plus regional and DC staff.
The credit union system was moving forward in the market. In August the agency reported credit union loans had grown 26.2% over the 12 months ending in June 1984. Member shares were in their third year of double digit growth following deregulation.
This year was also the 50th Anniversary of the passing of the Federal Credit Union Act, an event celebrated by the agency in many ways, including new chartering and total membership goals.
The Conference Launch
On March 14, 1984 NCUA’s press release announced the initiative: NCUA to Hold First Conference of Federal and State Examiners and Credit Union: It read in part:
“This National conference is a unique opportunity to bring together credit union officials, state and federal credit union examiners and regulators and representatives of the credit union trade associations,” said Chairman Callahan. “It will be a chance to discuss current concerns and share problem-solving techniques. Examiners need to be exposed to a wide range of ideas and procedures that will enable them to do a better job of ensuring the safety and soundness of credit union particularly in a deregulated environment.”
We want to make it possible for the public and private sectors to learn from each other and openly discuss the progress, and problems of the credit union movement.”
A registration card was placed in the NCUA’s 1983 Annual Report sent to every credit union in March 1984. It showed the two sessions, the first with examiners, and then followed with all credit unions joining from December 9 through the 14th.
The May 1984 NCUA News reported why registrants said they would be coming:
Don Beall, President of NASA FCU was quoted: I think this is a welcome relief from the past when we had little opportunity for constructive dialogue with the regulatory. The operational types and examiners live in different worlds.
Robert Sorin, Superintendent of the Ohio Division of Credit unions wrote: “The field staff has never had the opportunity to gather with other state or federal examinders to exchange ideas. . . we want to come away with some new friendships and many new ideas.”
And the price was right. NCUA secured the government room rate of $38 for all participants including spouses. Two people who choose to share a room would pay only $19 apiece.
A registration form was included in the June newsletter. A conference registration packet was mailed to all FCU’s that same month.
The form also announced that the agency had negotiated a substantial airline savings with United and gave a toll-free number for credit unions to call for discounts for Vegas flights.
In September the News headline read Two Per Credit Union Attendance Placed on Conference Attendance. The explanation: “Due to heavy demand, registration is now limited to a maximum of two persons per credit union, a move designed to allow as many credit unions as possible to participate.”
On September 28, 1984 the NCUA announced the conference was sold out. Registrations were coming in at 100 per week and the 2,500 person room capacity limit was reached two months ahead of schedule.
“We are thrilled but not surprised by this tremendous response. Credit unions were quick to recognize this will be the kind of learning opportunity they just can’t get anywhere else,” said Chairman Callahan.
The Conference Speakers
The conference schedule offered over 60 different panels, workshops and case studies. The sessions speakers included all three NCUA board members plus Federal Reserve Board Governor Martha Seger; Richard Breeden, staff director to the Vice President’s task Group on Regulations of Financial Services; former NCUA board chair Larry Connell, former FHLB Chair Richard Pratt, former NCUA board member Harold Black and Al McGuire former Marquette basketball coach, and current NBC sports analyst.
When the conference agenda was finalized, more than 300 speakers and panelists were listed including federal and state regulators, leading credit union professionals and trade associations officials.
In posts later this week, I will present some of the content offered and photos. I believe this will illustrate the unique charater and significance of this extraordinary event.
The Conference’s Significance
This National Conference was a celebration of recent success and a dialogue about the future of the cooperative system. It was not an addition on top of NCUA’s traditional roles of examination, supervision and administration. Rather it was a culmination of the values, practices, and common purpose for how NCUA had been involved with the credit unions since deregulation.
Chairman Callahan believed the single most critical responsibility of a leader was communication, both listening and sharing points of view. From frequent press releases, open press conferences, board meetings on the road, transparent dialogue was the foundation for common industry efforts.
This conference was designed as an optimum opportunity for these exchanges. It was the high point for a new relationship paradigm for NCUA with credit unions. This “tipping point” in the positive and constructive relationships between credit unions and regulators would stay in place substantially until undone by athe Financial crisis in 2008 and thereafter.