NWCUA President Delivers Joint League Letter to NCUA Chairman
February 1, 2011
February 24, 2011
Northwest Credit Union Association (NWCUA) President Troy Stang met with NCUA Chair Debbie Matz this week while in Washington, D.C., at the CUNA Governmental Affairs Conference. Stang delivered a joint league letter, partnering with California, Nevada, Idaho, XXX and XXX, expressing serious concerns about recent directives concerning the role, duties and protections of volunteer board members and respectfully calling for immediate reconsideration.
“These issues must be readdressed because they set dangerous precedent, undermining the strength of credit union boards and creating an environment of hostility and uncertainty,” said NWCUA CEO John Annaloro. “If we expect the credit union movement to remain strong we must support our board members appropriately.”
The recent rule and directive call into question the duty of the board being either to the credit union as a whole or to individual members. While members are the priority of any credit union the actions of a board cannot necessarily benefit all members at the same time and must take into account the overall health of the institution.
“I wanted to take the opportunity to deliver this message in person. We’re concerned that NCUA is overstepping its authority and creating a litigation trap for credit unions by blurring the lines around board roles and responsibilities,” stated Stang.
Additionally, NCUA rules give the agency the ability to oversee indemnity payments, determining under what circumstances payments will and will not be paid.
“Overall, this confuses the situation further by creating an uncertain climate for those who would consider being board members. This hurts each credit union in recruiting and maintaining well-qualified board members,” remarked Stang.
The group has called for NCUA to reconsider their issuances and spend more time studying the potential impact.
To read the entire joint letter to NCUA click here.