Does RBC Deserve a Second Comment Period? Video CUTs
ALEXANDRIA, Va. – Following the NCUA’s Listening Session, many attendees were not satisfied with the agency’s answers to questions regarding a second risk-based capital rule comment period.
During the event, Matz said unless the NCUA is in violation of the Administrative Procedure Act, the agency does not intend to re-propose the rule.
“We’re not trying to get a consensus on it. We will never get a consensus on it – that’s not the role of the regulator to get a consensus,” Matz said on Thursday.
Michael Tucker, president/CEO of the $131 million West Virginia Central Credit Union, said there should be a second comment period because the agency is expected to make significant changes to the current proposal.
“She [Matz] is never going to get a consensus, that’s obvious; no matter how they write the rule, somebody’s going to say, ‘well, that doesn’t work for my credit union,’” Tucker said in a video interview.
Linda McFadden, president/CEO of the $154 million XCEL Federal Credit Union in Bloomfield, N.J., said the NCUA has not explained why there is a rush to finalize the rule without a second comment period.
“I think everybody in the room would like to see a second comment period. NCUA’s made it clear that there will not be one and they did not answer the question as to why is there a rush for this,” she said.
NAFCU Senior Vice President of Government Affairs and General Counsel Carrie Hunt told CU Times allowing a second comment period is a matter of fairness.
“Just from a fairness perspective, I think credit unions really need and deserve another chance to see what NCUA’s going to put into place,” she said.
William J. Mellin, president/CEO of the Credit Union Association of New York, said it was clear during the event Matz is not planning on a second comment period at this time.
“They’ve been consistent with the past. They’ve been consistent with the law so I think she feels she has enough information to move forward with it,” he said.
Mellin added that credit unions would be happy with a second opportunity to comment on the proposal but the agency has other plans.
“They [NCUA] feel they have enough comments. They’ve done the three listening sessions. I think they feel that they are ready to move forward. Hopefully the changes will be generally well received by credit unions,” he said.
David Surface, president/CEO of the $154 million St. Jean’s Credit Union, said he is not concerned about a second comment period.
“I don’t really have an issue with that to be honest with you. I think they’ve been inundated with 2,200 letters,” he said. “I think we had enough time to put those letters together and I think the listening sessions were important and I think a way to almost have a second comment period.”