NCUA Chairman Debbie Matz reaffirmed her support forsupplemental capital for credit unions at WOCCU's annual meeting.Credit unions' need for capital reform can only heighten. Butpermitting the NCUA to define prompt corrective action bucketsrequires action by Congress.

Once Washington moves past the debt ceiling mess, credit unionsneed effective lobbying action on the issue of capital reform. TheNCUA now has two Capitol Hill professionals: Todd Harper, who was atop aide to Rep. Paul Kanjorski (D-Pa.), and former Texasleague lobbyist Buddy Gill. The issue is a real safety andsoundness concern for the NCUA, so while the agency technicallydoesn't “lobby” Congress, it can provide guidance on matters suchas capital reform.

The national trade associations will also need to up theirlobbying game. Credit unions haven't won anything proactive for theindustry in more than a decade. Ironically that win was what alsothrew PCA (and the business lending cap!) around credit unions'necks like a dead albatross. PCA for credit unions was intended toprovide credit unions parallel capital protection to the banks asimposed in the FDIC Improvement Act. However, one huge problem forthe NCUA and credit unions was that Congress decided to define PCArequirements for credit unions rather than allowing the NCUA to doit even through the FDIC has that flexibility.