Filson’s Petition Debated Within Industry
A White House petition written by Callahan & Associates Chairman Chip Filson asks President Obama to select NCUA board members who “understand the shared economic value for people and communities created by the cooperative model.” Filson’s petition, which as of March 13 had collected just 4% of the total needed by March 26 to elicit a White House response, also states that board members should be motivated by the unique contributions and needs of a cooperative business.
What exactly does that mean?
Cooperative principles like autonomy and independence have gone by the wayside at the NCUA, Filson said. “I think that is the tragedy of the CLF story, that essential pillar of autonomy and independence,” he said. “Our own liquidity safety net has been tragically compromised. The system’s ability to provide its own self help is part of the reason other regulators defer to the cooperative charter and the regulatory system established there.”
Bruen said he thinks the CLF has outlived its usefulness and should be closed down, and the Federal Reserve’s discount window is a better emergency liquidity option.