There are a half dozen leadership roles in credit unions that have major implications for the entire movement. Among these are the leaders of several trade associations, a significant CUSO or two, TruStage ( formerly CUNA Mutual), a couple of large credit unions who exercised public roles, and of course the NCUA Chairman.
The CEO position in any of these 6-10 positions does not confer leadership. That characteristic depends on the occupant’s’ ability and understanding of his or her leadership aspiration. Another critical factor is whether the organization led by the CEO is perceived to be well run.
In almost every instance, credit unions expect these leaders to be capable administrators and aware of cooperative design’s unique role in America’s market driven economy.
One of these critical positions, the Chair of NCUA, is being appointed. That responsibility is even ,more vital as there is no board role under the Trump administration’s view of executive authority over independent agencies.
John Crews, currently serving as the Treasury Department’s Deputy Assistant Secretary for Financial Institutions Policy is expected to be confirmed by the Senate shortly. In terms of the experience one might like to see from a resume, there is little to indicate what priorities he will bring to the position.
This experience gap need not be a drawback. Previous NCUA chairs have included recently defeated former members of congress and a variety of intra-governmental transfers from staff roles.
But especially in this administration’s view of presidential leadership, it is important to note what the Project 2025 Playbook states about financial regulation policy. John Crews has worked directly for Treasury Secretary Bessent who is the key player in overseeing Trump’s policies for depository insitution regulation. It is feasible that he would function as Crew’s de facto boss.
Here are excerpts from the Project 2025 Playbook.
IMPROVED FINANCIAL REGULATION
From page 705: One of the priorities of the incoming Administration should be to restructure the outdated and cumbersome financial regulatory system in order to promote financial innovation, improve regulator efficiency, reduce regulatory costs, close regulatory gaps, eliminate regulatory arbitrage, provide clear statutory authority, consolidate regulatory agencies or reduce the size of government, and increase transparency.
Merging Functions. The new Administration should establish a more streamlined bank and supervision by supporting legislation to merge the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, the National Credit Union Administration, and the Federal Reserve’s non-monetary supervisory and regulatory functions.
U.S. banking law remains stuck in the 1930s regarding which functions financial companies should perform. It was never a good idea either to restrict banks to taking deposits and making loans or to prevent investment banks from taking deposits. Doing so makes markets less stable. All financial intermediaries function by pooling the financial resources of those who want to save and funneling them to others that are willing and able to pay for additional funds. This underlying principle should guide U.S. financial laws.
Policymakers should create new charters for financial firms that eliminate activity restrictions and reduce regulations in return for straightforward higher equity or risk-retention standards. Ultimately, these charters would replace government regulation with competition and market discipline, thereby lowering the risk of future financial crises and improving the ability of individuals to create wealth.
From page 706: Direct government ownership has worsened the risks that government-sponsored enterprises (GSEs) pose to the mortgage market, and stock sales and other reforms should be pursued. Treasury should take the lead in the next President’s legislative vision guided by the following principles:
- Fannie Mae and Freddie Mac (both GSEs) must he wound down in an orderly manner.
- The Common Securitization Platform57 should be privatized and broadly available.
- Barriers to private investment must be removed to pave the way for a robust private market.
- The missions of the Federal Housing Administration and the Government National Mortgage Association (“Ginnie Mae“) must he right-sized to serve a defined mission.
(End Quote)
.Who Will Lead the Credit Union Movement
To succeed as a movment based on cooperative principles, credit unions require leaders with both vision and practical wisdom. NCUA is likely to have neither under the Trump administration’s version that all policy is ideological. Hauptman’s tenure as solo chair certainly followed that direction.
But this challenge of leadership capability is not new. Credit unions have had major turning points in the past. Leaders have emerged with energy and ideas that have resulted iln reforms and excitement. That might happen at NCUA. It has occurred before.
This time the task would seem more urgent and necessry. The administration’s approach which is pay to play is very attractive for some in credit union land. For others, there is the ambition to bring new ideas to better align with member needs, not just add more to the balance sheet.
Which approach will credit unions support?