BIRMINGHAM, Ala.—It’s no easy task to forecast what might lie ahead for the make-up of the NCUA board. That’s true even if you formerly were chairman of that board.
“There’s going to be a lot of politics to watch next year regarding NCUA,” observed Dennis Dollar who served as NCUA Chairman from 2001-2004. “There will probably be activity post-election or in the first half of 2017 on NCUA board nominations. But for the rest of this year I think we will have a two-person board.”
Among the uncertainties: when might a third person be nominated to the board to fill a currently vacant seat, and what might become of the Obama Administration’s nomination of board member Mark McWatters to join the board of the U.S. Export-Import Bank. As CUToday.info has previously reported, given the current political climate and the fact elections are under way, it’s unlikely any nominations will be approved by Congress.
“All reports I hear from Capitol Hill is that there are very few if any nominations moving forward in this highly charged political election year,” said Dollar. “I would say the odds are pretty much against any Obama nomination being confirmed by the Republican-controlled U.S. Senate, even though Mr. McWatters is a Republican.”
Ex-Im Bank Nomination
Dollar noted that the Export-Import bank itself is controversial, with some in Congress wanting to dismantle it. The Senate Banking Committee Chairman Richard Shelby (R-AL) has also said he does not intend for the committee to consider McWatter’s nomination in 2016.
“A lot of Republicans think the Export-Import Bank is an overextension of the government’s arm into the international free marketplace,” said Dollar. “And there are a lot of Democrats in the Bernie Sanders wing of the party who think the bank is corporate welfare. It is controversial on both sides of the aisle for different reasons.
“So, if I had to predict, I would say Mr. McWatters will be at the NCUA for the remainder of this year and on into next year,” said Dollar. “Then whoever wins the presidential election will appoint the next board member to take the seat left empty by Ms. (Debbie) Matz.”
Dennis Dollar
The term of Rick Metsger, who was recently appointed NCUA Chairman, expires in August of next year.
“Then, of course, there is always the possibility that Mr. McWatters next year could be reappointed to the Export-Import Bank board and, if so, you could have a complete turnover of the entire NCUA board in 2017,” said Dollar. “Or, if a Republican wins the White House, it is very likely that Board Member McWatters could become Chairman McWatters and stay at NCUA, as he has three more years on his term.”
Dollar said he is experienced in serving on a short-staffed NCUA board.
“In 2002, Geoff Bacino’s term ended and the (President George W. Bush) asked Yolanda Wheat to move on. So I went for eight weeks as the sole member of the NCUA board,” said Dollar. “I call it the time of the greatest unanimity in NCUA history.”
One-Person Board
Dollar said the agency held one board meeting while he was the only board member.
“We took some formal actions during the time I served as a one-person board,” Dollar said. “I did so to specifically establish a precedent that in the event at some point in the future only one person was sitting on the board, NCUA could still take action.
“There are always regulatory and supervisory actions that need to be taken and issues with troubled credit unions to be resolved,” continued the former NCUA Chairman. “So we felt it was important not to leave the agency hamstrung as to its board’s authority in the event there is ever again a one-member board. With a three-member board and the reality of political nominations and confirmations, that from time to time becomes a possibility.”