I attended former NCUA board member Todd Harper’s interview with Aaron Kline of Brookings yesterday. Thes session lasted an hour, was recorded and can be accessed here.
Notes from the Conversation
When asked why the administration removed the two members, Harper thought the firings were part of a broader strategy to eventually change the Federal Reserve Board before those terms expire.
In the February closed board meetings, he had voted for the staff downsizings that were agenda items on the public April board meeting–which was cancelled.
He had not met with he DOGE people and was not aware of their role in the agency. NCUA legal staff had not provided any advice versus the board removals. Only Inclusiv had backed his suit so far. He expressed disappointment that America’s Credit Unions had taken a “wait and see” approach.
Data Referenced in Questions
In responding to two questions Harper used prepared data. One topic was the initial findings from NCUA’s call report collection of OD/NSF fees from credit unions over $1 billion. The second was the number of CAMELS code 3, 4, and 5 ratings. In both cases the data was used to support his previous positions. He was critical of fees and asserted staff cuts could increase risk to the NCUSIF. Therefore the need for a higher NOL cap.
In terms of future policy he listed three areas: disclosure of executive pay for FCU’s, paying volunteer board members for dependent care, and revisiting the NCUSIF’s NOL cap.
When asked about taxation of credit unions he said it could impact safety and soundness by slowing the growth of retained earnings/capital. But that Congress wlll decide the issue while noting the Washington state legislature’s proposal to tax state charters which buy banks.
My reaction. The Harper one saw at NCUA, his priorities, selective use of data, and policy justifications were the focus. This may have been due to the interviewer’s questions on areas such as naming rights for stadiums, bank purchases and OD fees.
Harper’s attention was his NCUA policy preferences, not the future of credit unions. There was no rallying cry to fight back on the firings. He is not turning the page either. As he said in response to a question from a reporter, he is not “going off Broadway.”
Typical Harper, twist reality to justify unproven risk. Absolutely no way that reducing staff increases risk and requires higher NOL. The man is a one trick pony, continue to abuse CU member capital in The false name of risk mitigation.
Nice biased interviewer as well. I hink that we do need to address O/D fees but lots of talk about how Navy O/D fees compare to B of A, but nary a mention about B of A usurious credit card rates versus Navy credit card rates all below 18%. Can’t imagine that the income numbers are in any way comparable.