The NCUA announced its budget increase at the last board meetingmuch to the dismay of the industry that supports it financially.While some acknowledged additional spending might be necessary tohandle problem credit unions and the corporates, others weredownright-I'll clean it up-mad.

The day after the board meeting, NAFCU President/CEO Fred Becker sent a letter to the NCUA that“seriously questioned” whether more than $1 million worth ofpaintings, furniture replacement and bathroom upgrades were 100%necessary at a time when credit unions are so badly hurting. Healso pointed out that the NCUA has a higher ratio of examiners toassets than the FDIC, which supervises more complexinstitutions.

The 2011 NCUA budget equals approximately 2.1 basis points. Thatis on top of the anticipated 20-35 basis point assessment for 2011. Credit unions' ROAaccording to the NCUA's own third-quarter statistics was at 45basis points. How can credit unions survive at this rate?

Continue Reading for Free

Register and gain access to:

  • Breaking credit union news and analysis, on-site and via our newsletters and custom alerts.
  • Weekly Shared Accounts podcast featuring exclusive interviews with industry leaders.
  • Educational webcasts, white papers, and ebooks from industry thought leaders.
  • Critical coverage of the commercial real estate and financial advisory markets on our other ALM sites, GlobeSt.com and ThinkAdvisor.com.
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.