The National Federation of Community Development Credit Unions has written an open letter protesting what it described as the shabby and unfair treatment Carla Decker received from the credit union industry in her pursuit of a seat on the NCUA Board.
March 28, 2012, NCUA Bans Credit Union Board Member for Decker Disclosure
Decker, whom the Obama Administration had nominated for the position, withdrew her name from consideration for the seat last week. She is CEO of the 10,600-member, $46 million District Government Employees Federal Credit Union, a CDCU.
“We were stunned and, frankly, disgusted at the treatment her nomination received within the credit union movement” wrote National Federation CEO Clifford Rosenthal. “Among the lowlights were anonymous attacks shared with and repeated by the credit union press, and even worse, unlawful disclosure of examination findings and recommendations - an action that presumably is still under investigation by NCUA.”
Credit Union Times published a story based on an NCUA examination report from the credit union that it had obtained.
Rosenthal also objected to the attacks on Decker based upon her being the CEO of smaller credit union.
“Despite the relentless wave of consolidations and mergers, a large portion of the credit union movement remains under $50 million - and many, a lot smaller than that,” Rosenthal wrote.
“There is widespread feeling among smaller credit unions that their larger colleagues would be delighted to see them vanish tomorrow - notwithstanding the political benefits these small credit unions conveniently provide on Capitol Hill,” he added. He also protested the attacks on Decker's CU for having made an $80,000 auto loan. “Reality check: low-income credit unions by regulation and good business practice serve at least a majority of low-income members” Rosenthal wrote. “In fact, for many low-income credit unions, it is vitally important to have a mix of middle-income or other members - often, we tell our members that an 80/20 rule - 80% low- and moderate-income, 20% other - helps sustain the business. Attacking this loan, which presumably was legal, was a cheap shot,” he argued.
Decker told Credit Union Times in an exclusive interview earlier this week that she would go through the process again.