New York Fed Picks Trio of CU CEOs for New Panel
Three more CEOs–representing some of the largest credit unions in New York state–have now been named to serve on a special bank/CU advisory panel of the Federal Reserve Bank of New York, the last district bank to fill out slots on the so-called Community Depository Institutions Advisory Council.
Like other CEOs elsewhere in the country joining the regional Fed panels, the trio–Robert G. Allen of Teachers FCU, Mary Madden of Hudson Valley FCU, and Michael J. Castellana of State Employees FCU–will participate in sessions aimed at cementing closer “grassroots” ties between the Fed staff in Washington and community banks and CUs.
“It’s absolutely great that we are getting recognized and invited to the table,” said Madden, head of the $2.9 billion Poughkeepsie CU. The first meeting of the New York Fed CDIAC is March 25.
Allen of the $4 billion Teachers of Farmingdale, the state’s largest CU, said interchange would likely come up March 25, but he also may raise questions about the Fed role on corporates “and just exactly how prepared are they in dealing with smaller credit unions” that may end up relying on the Fed for services. That may occur, he said, as NCUA moves to resolve the corporate dilemma over the next 18 months following the launch of the bridge corporates in 2010. While larger CUs have more coping flexibility, “size is a factor here and you have to remember the clock is ticking,” said Allen, referring to the original 24-month NCUA transition window on corporates finding solutions.
Another issue of concern to Allen is the state budget crisis, with layoffs and cutbacks in school districts triggering the potential for rising delinquencies or chargeoffs.
“This last recession is not over with more people losing jobs and income,” said Allen, noting that while New York “has not experienced anywhere near the bad effects of sand states,” the state still faces serious economic problems.
Madden said she also is prepared to discuss economic conditions in her area with the Fed staff, which is to include William Dudley, the president of the New York Fed, an organization long considered one of the most influential in the Fed system because of its key money market role.
“As I understand it, what we discuss will be passed on to the Fed Board in Washington in kind of a ‘feeder’ system,” said Madden. The regional CDIACs are slated to report back later this spring to a larger CDIAC in Washington that has two CEO reps, Randy Smith of Randolph Brooks FCU in Live Oak, Texas, and Michael Kloiber of Tinker FCU in Oklahoma City.