Big news has been popping up all over the credit union industry,and while I've written about these topics before, they deservefollow up and re-examination.

First, to rip off a children's rhyme, Bank Transfer Day haspassed, so you're the fool at last. The fools–no disrespectintended–being those who continue to say that Bank Transfer Day wasa gimmick and nothing would come from it or even that it would havea negative impact on credit unions.

Credit unions opened more than 40,000 new accounts on Bank Transfer Day according to CUNA.These accounts included $80 million in deposits and $90 million inloans, all in one day.

In the month running up to that day more than 650,000 people moved to credit unions, based onestimates from a CUNA survey. That doesn't even include those whomoved to community banks. By any measure credit unions havebenefited greatly from the angst against the announced and thenrescinded Bank of America debit fee.

Now credit unions need to make sure they follow up with allthese new members to see if they have loans, or in some cases moreloans, or accounts to bring to the credit union. And credit unionmarketing and PR types must keep the industry in front of themainstream press. The third-party validation of credit unionexecutives as experts in providing financial services to consumersis invaluable.

Second, Carla Decker, head of District Government EmployeesCredit Union (which according to the NCUA is officially named DCFCU, a situation that has caused some confusion), goes before theSenate Banking Committee Nov. 17. If you read Claude Marx' Marx on Capitol column,he notes that she's not a controversial appointee. In some sensethat is true. Given the lack of attention paid to the NCUA andcredit unions in general, she likely won't draw much attention fromthem.

However, there are some issues at her credit union that havebrought some attention from the credit union industry, which youcan only find at CUTimes.com.Read some of the comments found under the online article, “NCUABoard Nominee's Credit Union is 'High Strategic Risk.'”

I also outlined a few of them in my Nov. 2 column, “Perceptionand Reality Will Shape Decker's Fate,” but I did not go farenough. And quite honestly, new information has come to light.

According to examination documents obtained by Credit UnionTimes, DGE FCU had unreconciled ATM and ACH accounts goingback to 2002 totaling $734,235 that were not written off. Thereport warned that if the funds were not discovered they must bewritten off in the first quarter of 2011, which would likely resultin a net worth drop to 10.77%. At year-end 2010 DGE FCU's net worthwas sitting pretty at 12.18%, according to its financialperformance report. By first quarter 2011, it plummeted to10.11%.

Presumably three quarters of a million dollars went missing fromthe $45 million credit union. Regrettably, accounting problems atsmall credit unions is not terribly uncommon, but the fact the NCUAdid not force the credit union to write the funds down for eightyears is even worse. That amount didn't creep up overnight.

On top of that the credit union had repossessed a vehicle with aloan balance of $80,000. That's a heck of a nice car, particularlyfor a low-income-designated (by the NCUA) credit union to befunding the loan. Some larger credit unions wouldn't make that loansimply for the concentration risk. This is something credit unions,founded to serve those of modest means, would not wanthighlighted.

However, whether Decker's credit union is the victim of theeconomy or some sort of insider dealing or she has not run hercredit union well is irrelevant to the bigger picture. Her abilityto run a credit union and her potential abilities as a regulatorare very different skill sets.

When someone goes through the nomination process to the NCUAboard, their background is necessarily highlighted. Decker's mostrecent work experience has been at DGE FCU, therefore her creditunion comes under scrutiny by the media, by Congress and by theadministration (arguably I know, considering gaffes like TreasurySecretary Geithner's failure to pay his taxes).

While no one in the administration or the Senate may read this,I had to take a stand because I do care about the future of creditunions and the NCUA: Carla Decker cannot be the best candidatecredit unions can put up for the NCUA board seat.

This entire scenario runs counter to the trade associations'work to build credit unions' reputation in Washington, and yet theyaren't doing anything publicly to ensure NCUA board nominees fromwithin the credit union industry will represent the industry to thehighest quality possible.

CUNA and NAFCU need to get their priorities in check to advocatefor their member credit unions and send up someone from within thecredit union industry who will represent it in a better light.Forget about banker attacks that the regulators being too close tothe industry! Their regulators aren't exactly from another planet.Former FDIC Chairman Powell used to join in with the credit unionbashing.

But Mr. Marx is right. She'll likely pass through confirmationwith little more than a couple of pointed questions during herhearing. The Democrats will want to get someone confirmed just incase there is a change in party in the White House, and quitefrankly, credit unions and their regulators– like others–are anafterthought to party politics.

Next step
Read Marx on Capitol at CUTimes.com/MarxonDecker