Tennessee-Based NCUA Protest Group Takes to Road
A Tennessee-based group of credit union CEOs angry with the NCUA said this week it has grown to 45 members and is taking its message to the nation’s capital in person soon.
David Proffitt, president/CEO of the $166 million Alcoa Tenn FCU and coordinator of the Committee on Declaration of Grievances, said the ad hoc group has been gaining industry support since its March drafting of a seven-page letter to Congress complaining of what it called serious failings by the NCUA.
Committee members, which includes managers from North Carolina and Ohio, have warned that the NCUA’s assessment schedule “and corporate bailout” are leading to industry destruction.
Proffitt told Credit Union Times on Thursday that he and Ben Mauldin, his vice president-finance/IT, will speak May 9 in Greenbelt, Md., at a dinner meeting of the Metropolitan Area Credit Union Management Association.
Proffitt said he was invited to speak to the group on what MACUMA calls a “unique and controversial” issue.
Proffitt said he continues to hear from CEOs across the U.S. about “the unbridled power wielded by NCUA and other regulators” and that “individual credit unions did not cause these problems and are now being made the scapegoat.”
Congress needs to quickly place NCUA under strict controls, Proffitt advocates adding NCUA appears to lack “checks and balances like we have in our credit unions.”
Proffitt noted that among the latest to join the committee, which began with 32 members, is Roger Stout, president/CEO of the $37 million W-BEE FCU of Wilkes-Barre, Pa., who has been using his website to lambaste NCUA policies.
Stout, who is manager of a group of three other eastern Pennsylvania CUs through a firm he runs, Creducomp Inc., said the NCUA is bent on “wrecking us all in eliminating small credit unions” as a result of its assessment schedule.
Stout accuses the NCUA of undermining the entire industry as a result of NCUA buttressing large CUs which took large losses “because of risky investment decisions or bad loan underwriting.”
He said he was eager to join the Tennessee group when he read its declaration manifesto. “Kudos to them for speaking out,” said Stout, stressing the Pennsylvania CUs group have been run successfully “in an old fashioned way but providing all the up-to-date products” but that now their existence is jeopardized.