Three more CEOs–representing some of the largest credit unionsin New York state–have now been named to serve on a special bank/CUadvisory panel of the Federal Reserve Bank of New York, the lastdistrict bank to fill out slots on the so-called CommunityDepository Institutions Advisory Council.

Like other CEOs elsewhere in the country joining the regionalFed panels, the trio–Robert G. Allen of Teachers FCU, Mary Maddenof Hudson Valley FCU, and Michael J. Castellana of State EmployeesFCU–will participate in sessions aimed at cementing closer“grassroots” ties between the Fed staff in Washington and communitybanks and CUs.

“It's absolutely great that we are getting recognized andinvited to the table,” said Madden, head of the $2.9 billionPoughkeepsie CU. The first meeting of the New York Fed CDIAC isMarch 25.

Allen of the $4 billion Teachers of Farmingdale, the state'slargest CU, said interchange would likely come up March 25, but healso may raise questions about the Fed role on corporates “and justexactly how prepared are they in dealing with smaller creditunions” that may end up relying on the Fed for services. That mayoccur, he said, as NCUA moves to resolve the corporate dilemma overthe next 18 months following the launch of the bridge corporates in2010. While larger CUs have more coping flexibility, “size is afactor here and you have to remember the clock is ticking,” saidAllen, referring to the original 24-month NCUA transition window oncorporates finding solutions.

Another issue of concern to Allen is the state budget crisis,with layoffs and cutbacks in school districts triggering thepotential for rising delinquencies or chargeoffs.

“This last recession is not over with more people losing jobsand income,” said Allen, noting that while New York “has notexperienced anywhere near the bad effects of sand states,” thestate still faces serious economic problems.

Madden said she also is prepared to discuss economic conditionsin her area with the Fed staff, which is to include William Dudley,the president of the New York Fed, an organization long consideredone of the most influential in the Fed system because of its keymoney market role.

“As I understand it, what we discuss will be passed on to theFed Board in Washington in kind of a 'feeder' system,” said Madden.The regional CDIACs are slated to report back later this spring toa larger CDIAC in Washington that has two CEO reps, Randy Smith ofRandolph Brooks FCU in Live Oak, Texas, and Michael Kloiber ofTinker FCU in Oklahoma City.