Musical Moments of America at Its Best

For the anniversary of D-Day. Written in 1942 by Irving Berlin, I Paid my Income Tax Today supported the country’s income tax collection efforts during World War II.

The rights  are stilll owned by the Internal Revenue Service which distributed the song widely on its publication.

Proclaiming the patriotic virtues of paying taxes, this zippy little tune makes being “squared up with the USA” sound positively delightful. Clearly, the  national dialogue surrounding taxes, especially in  credit unions, has gone in a different direction.

(https://www.youtube.com/watch?v=IIT3xnYbmzQ&t=8s)

America’s Rising Generation at its  Best

The Lion Sleeps Tonight (Wimoweh)

To spark your day. The Young People’s Chorus of New York City sing at the Lincoln Center in 2021. These  are the future of the country.  Feel the joy and see the promise. I love the conductor’s enthusiasm.

(https://www.youtube.com/watch?v=erCq44KSEHQ)

An Encore

How Can I keep from Singing

Performed at the 16th Annual Anabaptist Choral Festival 2023 of Shenandoah Christian Music Camp (VA).  

The choir covers their faces to represent the text which speaks of darkness closing in around us: “What though the tempest loudly roars, I hear the truth, it liveth! What though the darkness ’round me close, Songs in the night it giveth.”

And the words of hope: I hear tne bells of freedom ringing; how can I keep from singing? 

(https://www.youtube.com/watch?v=Cw-ycev482k&t=9s)

NCUA Flying Solo

On May 22, the NCUA held its first public board meeting with its one and only member, Chairman Hauptman, overseeing staff reports.

This was the first public meeting since February, where the only agenda item then was the NCUSIF  update. Both March meetings were closed.  The March 27 and April 17 open meetings were  cancelled.  On April 16 President Trump fired the two democratic board members. That event is now being challenged in court with no specific timetable for resolution.

Observations from the May 22 Meeting

At the meeting’s conclusion Chairman Hauptman assured the public that NCUA was fully capable of meeting its statutory responsibilities.  He repeated the message from an earlier NCUA press release  on April 18:

Please be assured that the NCUA has precedent and standing delegations of authority in place to continue performing all operational and statutory requirements under the authority of a single Board Member. 

During the Bush Administration (2001–2002), Chairman Dennis Dollar acted as a sole Board Member. He held a Board meeting, voted, and took several actions, both administrative and operational. 

However the circumstances between these two situations is entirely different. In 2002, both nominees filling the expired terms were known and required only Senate confirmation. That happened very quickly in March.  This time, confirmed nominees have been fired creating two “vacancies.”  These two board members are challenging the President’s  removal in court.

Chairman Dollar held only one board meeting in which he received an NCUSIF  briefings and then tabled three other actions until a full board was in place.

Moreover, in a May 25, 2005 Delegation GEN 5 update by General Counsel Bob Fenner,  all delegations of Authority in the final paragraph is subject to the phrase “In a state of national emergency, all authorities retained by the board are delegated to . . .”  Are we-NCUA- in a state of national emergency? 

Hauptman’s situation is unique in how the vacancies occurred, the seemingly open-ended time period for single leadership, the dramatic internal staff and reorganizations underway, and the uncertain legal status of the fired members-especially if returned to their positions.

Board Item One: NCUSIF Update

The publc format of the March financial NCUSIF   update was changed. A  series of “dashboard” charts showing five-year trends for key balance sheet and performance ratops was unveiled.

These presentations provided interactive “eye-candy” but no increased transparency for how critical numbers such as the increase in loss reserves of $5.4 million were calculated. The loss reserves to insured shares ratio far exceeds the long term loss rate on insured savings.

Most importantly while reporting zero losses in the first quarter, there was complete silence on the recent liquidation of the $ 47 million Unilever FCU. This was finished in such haste that there was no conservatorship or apparent effort to find a willing merger partner.  The situation echoes the $13 million unexplained loss (20% of assets) at the $65 million  Creighton FCU in mid 2024.

The most important  issue, the underperformance of the NCUSIF portfolio, was documented in the new dashboard slide Portfolio Performance. It shows the NCUSIF’s return has trailed significantly the 90 -day T bill rate since mid 2022.  The year-to-date yield in the first quarter of 2.59% is significantly below the overnight return as well.

NCUA CFO Schied said staff’s policy was to continue the investment ladder out as long as ten years in order to ensure “a steady fund income.”  This ladder generates “steady income” that has trailed market returns by over 2.0% or more as shown in the bottom graph for over three years.

There was no reference to either interest rate risk (IRR)or ALM, the two basic factors in managing any portfolio. Especially one which cannot be adjusted once invested.  There is an obvious need for better policy and experienced investment management.

Chairman Hauptman likes to describe NCUA as an “insurance company.”  It would be helpful if there was much more transparency and thoughtful discussion about how this “company” manages its $23 billion  asset on behalf of credit unions.  This underperformance damanges both the fund’s finances and credit union’s returns.

Board Item Two: The Voluntary Separation Program

The staff stated that the voluntary layoff program had been agreed to in the March 21 closed full board meeting.  By  the May meeting the employee responses were  known.

A total of 250 employees elected to leave voluntarily. There were no forced departures.  Almost all will be placed immediately on administrative leave with full pay and benefits but doing no work.  This paid leave status extends until December 31, 2025.  This means most of these departing employees will be paid in full while not contributing for at least six months orlonger.

To incentivize the two options, there was a $50,000 bonus provided to each participant.  In addition, all will receive their 2025 merit bonus which will average $15K for junior staff and from $29K-$42K for senior staff.

In addition Hauptman announced there would be no restrictions on these employees’ future employment so they might find another job while on leave. He commented, “They might even be paid more than what they earned at NCUA.”

As explained by Executive Director Larry Fazio, the program was designed by the staff for the staff. There will be no budget savings for 2025.  The special severamce benefits will fully utilize the  NCUA’s operating funds for this year. The estimated total  of $75 million in potential “savings” means the average cost for the 250 departures was $300,000 each.

Staff was ambivalent about whether there will actually be anything close to these savings in 2026.  The gross cost of $75 million paid departing employees will be offset by new contracts, salary increases, new hires, technology investments and other expenditures setting up a new future state for the Agency.  In other words any savings are yet to be determined.  And  the generous terms of the 2025 voluntary departures will leave no surplus from the current year.

There were no specifics provided for how NCUA’s future organzarion  will be structured.  No departments closed or consolidated, no programs (eg. consumer exams, DEI conferences, etc) to be reduced. No reference to any DOGE recommendations for eliminating unnecessary expenses.

There ws  one specific example of change however.  Thiswas to extend the time between on-site exams based on a credit union’s net worth.  For credit unions $1-15 billion in assets, the exam interval would be from 12 to 18 months.  For less than $1 billion, the period between field contacts would be 14 to 24 months.

This one concrete step will reduce the agency’s in person safety and soundness exams as long as the net worth seems sufficient-above 10%.  This first line of defense for the NCUSIF is being weakened at a time when the sudden falures of Unilever and Creighton FCUs are still unexplained.

 Flying Solo & Landing Safely

Thia is not a business as usual moment  in this era of single board leadership. This circumstance  is exacerbated by the fact that Chairman Hauptman’s term expires in August of this year.  What happens then?  An acting Chair?  Who designs and follows through on NCUA’s future state?  Staff whose 25% voluntary separations outcome used up this enire year’s budget?

In a March 3, 2025 CUSO Magazine article,  Hauptman’s agnostic approach to the future of credit unions was presented:

On the topic of the NCUA’s future, Hauptman declined to speculate or advocate for one outcome or another, noting that while he does not shy away from controversial topics, he keeps himself from getting into debates when he has no authority over the outcome. The fate of the NCUA, he argues, is outside his control and lies in the hands of Congress and the White House.

Congress created the NCUA in 1970, and there were 27,000 credit unions operating before then…my only view on it is that it is important for people to understand that credit unions are different. So whoever in the future is going to be regulating needs to be aware of this.” 

In an April 23, 2025 memo to All NCUA Staff, Hauptman wrote in part: NCUA will be returning to the headcount that it had a few years back—but be assured we know it takes teamwork and creativity to “land the plane safely.” And NCUA is doing that quite well thus far.” 

The outcome from the first solo board meeting since 2002 suggests that there is still a great deal of turbulence.  It is not clear who is piloting the plane or where it is trying to land.

This first flyby of the pubic landing zone with credit unions leaves more questions than answers.  The future of NCUA with its implications for credit unions and their 100 million members seems at best cloudy.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Should Credit Unions Facilitate the Purchase of Crypto Currencies?

A number of credit unions already partner with crypto exchanges enabling members to purchase and store crypto.  More are considering the service. The fees can be attractive with apparently little risk.

But should this be a credit union endorsed activity? That is a question that arises in other contexts. For example other activities some might perceive as outside core purpose include  supporting state authorized cannabis banking,  interval vacation home ownership or various forms of legal betting.

Crypto issuance and lighter regulation are a priority for the Trump administration and for his family’s personal investing.

Yesterday substack columnist Jared Brock published his analysis of the pros and cons of  crypto currencies.  Following are excerpts from the article.

Can Bitcoin Save Us?

One model of currency creation is to let everyone privately create money and let the market decide.

This is where Bitcoin comes in.

Cryptocurrencies are pseudo-money built on a blockchain, which is a trustless, decentralized, encrypted digital spreadsheet.

Anyone can privately create one.

And boy, do they.

As of this morning, there are over 16,560,000 cryptocurrencies and tokens, with 57,335 new ones coming online just yesterday.

Nearly 100% of these are straight-up scams.

Allowed unbridled private money creation has all sorts of challenges:

  1. Obviously, it leads to a proliferation of fraud. Why would we want to put our young people, old people, unintelligent people, and vulnerable people at further risk of exploitation? . . .
  2. Market instability. It’s hard for people and businesses to plan and budget effectively when there are millions of currencies all whipsawing in price.
  3. Inequality. Rich people and rich corporations have more resources to create and promote their currencies, even if they’re inferior products. This further concentrates economic power and grows economic inequality.
  4. Transaction costs. Mastercard, Visa, Stripe, and the rest of the payments processing ilk already rob a huge percentage of our money, not unlike the moneychangers that Jesus drove out of the temple. With tens of millions of currencies in circulation, virtually every purchase would require several currency exchanges.
  5. Monetary policy. When all money is created privately, democracies lose the ability to direct the economy toward national goals and objectives like ending poverty.
  6. Currency wars. When there are millions of currencies fighting for customers, it incentivizes all of them to undermine and devalue their competitors to gain an advantage.

You don’t have to believe me.

You can just look at history.

America used to do private money creation.

At one point, nearly every city in America had its own city bank that issued its own currency.

Each value of each bank’s money was based on its reputation and financial stability.

It was the Wild West, and it led to endless bank runs, millions of bankruptcies, untold suicides, and the creation of the fraudulent, quasi-government (but actually private) money monster called the Federal Reserve.

Can you hear the Bitcoiners howling?

“Yeah, but Bitcoin has a limited supply!”

Right.

Bitcoiners have an autistic obsession with the fact that Bitcoin has a limited supply.

“Only” 2.1 quadrillion satoshis will ever exist.

My note: this is where I do not understand Brock’s logic.  This is the stated limit for bitcoin creation- 21 million. Is he speculating about infinite computer creation?)

How very impressive.

That’s 2,100 trillion.

That’s 2.1 million billions.

That’s 2.1 billion millions.

That’s more than 10 times all the money currently in existence.

So let me get this straight — you hate U.S. bankers for creating $21.86 trillion out of thin air… but you’re okay when someone else creates 96Xs more money out of thin air? Are you demented?

Bitcoiners insist they’re different, but it’s actually just more of the same — economic injustice and exploitation for all. . .

And what are all these Bitcoiners doing with all their hoarded Bitcoin?

They’re just hoarding it.

They’re lending it out on decentralized finance platforms for interest.

Millions of Bitcoiners have zero plans to ever sell or spend a single Bitcoin. The plan is to lock it in digital vaults as a reserve currency, then create digital Bitcoin-backed tokens that they can lend at interest.

In other words, they want to be the new central banksters, the new monopolistic overlords of finance who decide who gains access to money and who gets shut out. . .That’s the problem with all these Bitcoin-worshippers.

They still love money; they just call it by a different name. . .

Conclusion

Obviously, everything has costs and benefits.

I’m not against Bitcoin. . .

I’m against monopolization. I’m for sharing.

And frankly, millions of Bitcoiners are far-right libertarian rules-free-market hyper-individualist sociopaths. I wouldn’t want to be forced into using a single currency on their terms any more than on central bankster terms. . .

Thus, why I prefer sovereign money — democratic, accountable, safeguarded, fair, just, non-exploitative, accessible, nation-building currency.

I want honest money.

What do you think?  Is this a valid analysis for credit union’s contemplating facilitating crypto purchases?

 

A Member’s Question

If credit unions are a special idea about individuals’ collaborative financial efforts, we should care about human values and human rights when implementing this design.

I received the following from a member who had read several previous blog posts about mergers and just lived through the experience:

Recently, I was reading some of your articles, such as from 2017 regarding the issue of unjust enrichment by insiders in mergers. (Credit Unions for Sale) I didn’t realize what a longstanding problem this has been.   It seems like the whole structure is designed to enable those in power, in charge, to take advantage of those with less power, authority, resources, knowledge, and education.  

I don’t know who are the worst actors – the regulators who give the illusion of regulating to protect consumers, the BOD’s who are supposed to be looking out for members’ best interests, or the executive management who selfishly negotiate these deals at the expense of members, and try to convince members to give up their rights, their credit union, their net worth.   It’s a sickening rigged game. 

I see the motivation for the insiders who have millions of reasons for this, but how does the BOD benefit? Or regulators overseeing an industry decline in numbers and reputation?

A Rigged Game

Welcome to what democracy looks like with one- party government.  No loyal opposition.  In fact, no opposition, just obedience. Be a loyal consumer.  A satisfied customer, but not an owner.

The theory of cooperative design is that the one vote per member in election of their board members will act as a democratic check and balance to ensure the owners’ interest always come first.

It is an extremely rare event for those in power to fulfill this voting practice.  Boards become self-perpetuating; members are rarely encouraged to attend let along participate in the annual election.  And there is no voting, just acclimation for the board’s nominees.

The result is that boards and CEO’s believe they alone are responsible for determining the priorities and future of the members’ organization.  Even if this means transferring a long-standing, sound communal charter’s legacy  to another credit union where owners receive nothing and those last in charge cash out, often big time.

Democracy in a One-Party State

The defense offered by the regulator and the credit unions involved in these private deals is the members voted for it, often by overwhelming margins.

But what kind of a “vote” is taking place when those in charge control all the financial resources of the institution, the means for direct member and public communications, the timing and presentation of the election process, and the representation of regulatory oversight and approval?

The situation is the authoritarian’s dream of one-party governance. This is pretend democracy.  The people are told to vote for what the Board and executives will proclaim is a better future; albeit no longer under your control.

The results show the effectiveness of one-party rule.  Over 99 percent of mergers are approved.  An incumbent’s sure-fire strategy for self-enrichment.

To assert, as NCUA and state regulators routinely do, that the members’ voted for this is an  abdication of responsibility for member-owner rights. It destroys the core of credit union character. It demonstrates regulators as powerless or clueless in the face of this predatory  cooperative plundering of members’ equity. There is no governance by members, just subservience.

There Are No Limits

Ambitious CEO’s and boards see these free takeovers being negotiated daily.  There is no limit to the combinations being planned.  Just payout the initiators and receive the billions now up for grabs-for free.  The stakes will only get bigger, the payouts more creative and humongous, and the capitalistic model of acquisition dominate cooperative strategy.

But the history of one-party rule is not encouraging for the  long run.  The consolidation of power and resources grows, the lack of any meaningful role for owners is blatant,  and the sameness of all the “better products and services” becomes apparent to all.

Ultimately, the people will see what the member above observed.  The media will highlight the gaps between purpose and practice.  And the disruptions will start, small isolated at first, but real and threatening to those in authority.  Examples are already underway.

Most importantly, credit union leaders and members will learn what one-party rule means when this occurs with the federal regulator, not just in their individual institutions.  Then maybe the virtues of democracy will be embraced once again.

 

 

 

 

The End of Very Low Rates?

As the US economy  continues to react to various Trump fiscal initiatives,  some still hope interest rates will fall to the levels of the first Trump era.

That extremely low interest rate period, begun in response to the financial problems of 2008/9, was itself unique.  This analysis from yesterday’s Marketplace’s Daily Wrap suggests why that may not occur again.

As the GOP spending bill winds its way through Congress, the trajectory of U.S. federal debt, now 100% of GDP , is in the balance. What Congress and the president do with the finances of the U.S. government will seep out into the rest of the economy. Specifically, if the government must borrow a lot more, it affects the cost of borrowing for pretty much everyone else.

Recall the period before the pandemic when interest rates were super low. Where people were “borrowing money at 3 and 4% for commercial real estate transactions or a house,” said Alice Frazier, president of the 154-year-old Bank of Charlestown in West Virginia. “The low interest rate period was not a normal period.”

It was a dream, and we’ve woken up from it.

Rates were low back then for many reasons. Inflation was not an issue. Also, after the financial crisis, the Federal Reserve started keeping short-term rates low and working hard to push long-term rates down. And investors around the world were traumatized by the crisis and particularly interested in safe assets, accepting low rates for that purpose.

All of that has now changed. Inflation awoke, the Fed raised rates and, over time, international investors were less accepting of lower yields. . .

Would-be homeowners started to think twice about that mortgage. “And on the business side there were investments, but our borrowers were much more measured, and this is operating type companies — landscapers or manufacturers,” sai d Frazier.

This is generally what happens when interest rates in the economy go up.

“Everything that the firm or the private sector would contemplate doing gets a little bit harder to do,” said Jesse Schreger, an associate professor at Columbia Business School.

Higher rates haven’t been fun, especially if you’re a buyer trying to get a mortgage, a startup trying to lure investors, or a struggling restaurant chain trying to stay afloat. But so far, the economy as a whole has been strong and able to handle it. . .

“If you take a look, for instance, at consumers, at households, you know, we think they’re in a very sustainable place. Balance sheets are relatively healthy. The use of credit and leverage does not appear unsustainable,” said Josh Hirt, a senior U.S. economist at Vanguard. . .

But the question right now is whether borrowing costs across the economy, after going up a notch since the start of the pandemic, are going to go up another, perhaps more unpleasant notch — and not just for the private sector.

“I think that really is gonna come down to the key question: how are we going to manage our fiscal situation in the U.S.,” Hirt said.

 

A Critical Leadership Capability with Example

A professor in the Kellogg School of Management at Northwestern was asked the most important skill he learned in his consulting work.  His answer:  Asking the right questions.  He commented:

PhDs, like many students, excel at defining problems by asking the right questions.

“It’s important everywhere—in academics, in industry, and otherwise—to ask the right questions and choose what to work on, more so than actually knowing how to figure it out,” Gordon says in his keynote address for the Tepper School of Business at Carnegie Mellon University. “The skill is really crucial, and it will take you everywhere.”

I would add to his list, the most important issues of public policy which confront credit unions.

An Example: Questions of Public Policy Priorities for Credit Unions by Ancin Cooley

If Not Now, Then When?

I try to wade into these conversations with as much nuance and care as possible. I understand the layers, timing, political cycles, and just how hard it is to win in Washington.

So when I say this, I say it with full respect for the effort that went into protecting the tax exemption, again. That work is meaningful. It matters. And I don’t take it for granted.

But now that we have a slight intermission before we hit repeat on this tax fight ritual. —I have some honest questions.

Because it seems like every year, every cycle, this issue is always the centerpiece of our advocacy narrative. It’s always the rallying cry. The headline. The thing we organize around.

And my question is:

When do we get to talk about something else? Not instead of—but in addition to?

When do we apply that same level of coordination, messaging, energy, and visibility to:

Member-facing issues?
Governance questions?
Structural threats?

For example:

Can we discuss why America’s Credit Unions is advocating against succession planning requirements?

Can we discuss why America’s Credit Unions continue to pursue changes that would further weaken the role of supervisory committees? We lose several credit unions annually due to a lack of basic internal controls.

If we can mount national campaigns to protect our tax status—and we should—then why can’t we have a transparent, public conversation about the internal reforms that will shape the future of cooperative governance itself?

When’s the right time to advocate for member-facing issues to help credit unions grow and deliver more value to their communities?

Mainstreet” Issues like:

Student loan reform affects members’ financial health and directly impacts credit unions’ bottom lines (past dues, charge-offs, and additional provisions).

Corporate ownership of homes prices out local families and limits credit unions’ ability to provide mortgages (Most credit unions over $1 billion have large mortgage portfolios).

These are win-win opportunities. They intersect with both member interests and credit union sustainability. They build relevance. Trust. Brand strength.

But they rarely seem to rise to the top of the agenda if discussed at all.

I get that during the ceremonial tax battle, it may not feel like the right time for deeper, messier conversations. But that leaves me with the final question:

If not, then… and not now… When?

I would add: What Questions are you, your board or your external consultants raising for your consideration?

 

Solid Anchor: Pictures and Memories from Vietnam

          A recollection on Memorial Day

The Vietnam War was a divisive period in American society.  Duty called people in many, often differing diections.

The pictures below are of Solid Anchor a combined Vietnamese US Navy base on the Cua Lon river at the very tip of the Ca Mau penisula.  This stage of the war was relatively quiet.  The Seal team’s primary role was to gather information about threats from Viet Cong or North Vietnamese presence in the area. These pictures are from January and February 1971.

Leaving the USS Windham County (LST 1170) to go to Solid Anchor.

Passing an Island on the way

Large swaths of vegetation and lowlands destroyed by agent orange spraying.

The river front at the base dredged from the  lowland.  The river patrol boats at the dock.

The water front, an  artificial peer from sand filled 40 gallon drums.

A patrol boat disabled by a mine.

VIew from a base watch tower, manned 24 hours.

Joint command flags. Base main office with chow hall and for paying troops with military pay certificates (MPC) not dollars.

The Seal team’s hooch, Happiness is . . .  The boy with snake had found a Viet Cong cache of 200 grenades.

Sunset at helo pad with two gunships always ready to lift off at the first sign of trouble.

Dawn on helo pad.

Day after some incoming. Bunkers and metal for airstrip. (January 9, 1971)

At setting sun down main street.

Heading to Saigon with another huey close by to return all left over MPC which was being replaced with a new issue.

A straight canal on way to Saigon.

A Coast Guard ship  deployed  with our LST.

Heading to homeport after being gone for over six months.

Waiting for dads’ return atYokosuka Naval Base, Japan.  Lara in yellow rain coat and Alix on the way.

 

Tomorrow’s Unique NCUA Board Meeting

Thursday’s NCUA board meeting is unique. Only one of the three person board will be there.

Normally these public events are fully scripted in advance.  All senior advisors have briefed each other on their members’ positions.  The staff has been given the questions directors will ask.  All actions are known in advance.  Spontaneous dialogue, let alone direct back and forth is highly unusual.

The first open board with a single member will showcase Hauptman’s approach and how a single board member questions staff.  Will it be an open discussion or just a pretend briefing with all the dialogue preset?  Will Hauptman  be able to challenge a staff response, as he has sometimes done in the past?

The Two Agenda Items

One is the quarterly NCUSIF update.  It will be interesting to learn if Hauptman brings a more transparent approach to this financial briefing.  Many issues are long standing such as:

Why does the fund’s financial statement presentation not conform with private GAP (the practice until 2010) versus governmental accounting terminology?  In all of NCUA’s three other funds, financial performance follows private GAP accounting presentation.

Will there be an informed discussion about the Funds interest rate risk (IRR) policy?  The NCUSIF below market performance (2.59% YTD yield)  and investment practice have lead to a portfolio value with a net market loss since December 2022.

For two years the normal operating level (NOL) cap has been set above the long term 1.30% with no factual analysis to support this higher level.  This cap sets the level above which credit unions are sent a dividend as part of their open-ended funding commitment in the 1% deposit.  Will the cap be reset to its historical level?

The fund has a $ 5.4 million provision operating expense in March.  Will the staff show the details of how this amount was determined?  The loss reserve is now $242 million or 1.36% on insured shares.  There have been virtually no insurance losses in the past five years.  Why is this reserve still growing relative to total insured shares? How will the closure of Unilever FCU impact the fund?

How will the savings in total NCUA operating expenses due to staff and other spending cuts, reduce the NCUSIF’s expenses for the remainder of the year?

Finally, when will the NCUSIF’s equity and 1% deposit liability to insured shares ratio be calculated using the latest data from a single accounting period. This management  calculation would be a more accurate presentation of the Fund’s true financial position.  At the moment this ratio is calculated using data from two different time periods six months apart.

The State of the Industry

A traditional part of the quarterly NCUSIF briefing has been an appendix which presents the distribution and trends in CAMELS exam ratings by asset size and numbers.

The problem with this staff presentation is that the ratings are an average at least six months old. This assumes an annual exam cycle.  The staff does not present the current industry financial trends as of the same date as the NCUSIF financials.  However the industry’s  numbers are available.

Last week Callahan & Associates presented credit union’s first quarter 2025 financial performance. Here are some excerpts from the full presentation.

Note that all of the trends are positive begining with the key blance sheet totals compared to 2024.

Will these positive trends be reported as the context for the NCUSIF financials at the same date?

Agenda Item Two: Staff Reorganization

The issue will be how were the reductions  achieved?  What reorganizations are necessary?  What are the operational priorities guiding these changes?

Will the focus be on areas where activity seems to be redundant or non-existent?  Why two legal staffs?  Can the CLF, which has had no activity for over a decade, be combined with other supervisory roles?  Why is a separate AME office necessary when for almost its entire life this function was part of the regional office staff?  Are contracts being used to replace staff functions thus giving the appearance of lower headcount but spending levels remain the same?

Finally, who is in charge?   The board’s job by statute is to manage the agency.  If a person has a question about any area of activity, who are the persons with line responsibility?  Can an org chart be published?

I would listen for any discussion about the board’s functions, scope and duties  during this period of leadership uncertainty.  What is the legal position of the General Counsel for a solo  Board’s authority?

So tune in Thursday via zoom at 10:00 AM.  Or better yet, go in person.