NCUA Diversity Standards a Compliance Nightmare
Credit Union Times recently published a guest editorial ("Let’s Help Make Them Do it" – Jan. 22, 2014) the basic premise of which was that the federal government should make financial institutions implement diversity policies and practices as mandated by Section 342 of the highly partisan and still controversial Dodd-Frank Act. In reality, that point of view was misguided and ill-informed.
The “Proposed Interagency Policy Statement Establishing Joint Standards for Assessing the Diversity Policies and Practices of Entities Regulated by the Agencies” developed by the NCUA and other banking regulators’ Offices of Minority and Women Inclusion are a compliance nightmare that should be keeping credit union CEOs and chief compliance officers awake at night. It is bad rulemaking that is based upon bad law that will lead to lots of bad lawsuits. And I am not the only one who thinks so.