By Michael Fryzel
In one’s personal or professional life, when an opportunity presents itself for that person to accomplish something good, they must seize the opportunity and make the best of it.
On May 1, the NCUA board was reduced to two members due to the resignation of Chairman Debbie Matz. As a result, the ability to get things done changed dramatically. The key to do so has become completely dependent on the art of compromise.
The remaining board members, new Chairman Rick Metsger, a Democrat, and Mark McWatters, a Republican, have been seen to approach their jobs differently. Mr. Metsger has been a strong supporter of the policies and programs of the now departed chairman. Mr. McWatters has been less supportive and more focused on ways he believes are better to achieve the objectives of sound fiscal management and fair and equitable regulation.
A Game Changer
This “new board” is a game changer. Two individuals now have an opportunity to converse and compromise and by doing so achieve many of the goals each have set for themselves.
Mr. Metsger has been very vocal on needed changes to the field of membership rule. Mr. McWatters favors changes, but is equally supportive of supplemental capital for credit unions. Mr. Metsger’s position on that issue is not fully known. These are two important issues that could help many credit unions serve more individuals and do a better job while doing so. Will the two board members be able to reach an amicable agreement and accomplish both?
Will the “new board” recognize that it is not 2008 and perhaps some of the policies, procedures and rules enacted during the crisis can be lessened or eliminated? Everyone says times are better and credit unions, overall, are strong. That assessment would lead one to believe that less-stringent guidelines may be in order. Will the two board members find common ground on that issue?
Should examination cycles for strong credit unions be extended from 12 to 18 months? Both board members seem to believe that such a change may be possible, but there is a lack of agreement as to when and if it can be accomplished. Mr. McWatters wants it to be considered sooner than later. Mr. Metsger appears to be willing to wait beyond the end of this year. Can the two board members agree to request NCUA staff to expedite the needed information so that the “new board” can openly discuss the issue and render a well-thought-out decision on what to do and how soon it can be done?
This Opportunity Doesn't Come Every Day
Will the “new board” be able to expand transparency by holding a public session this year to discuss the 2017 NCUA budget? Mr. Metsger has previously supported the position of not holding a hearing while Mr. McWatters believes there is no harm in open discussion amongst the trade associations and other interested individuals about the agency’s expenditures. Can the two board members agree that it is time for stakeholder involvement with the budget process?
Previous board meetings and public comments made by Mr. Metzger and Mr. McWatters have shown that both gentlemen have different approaches to getting things done. This is not uncommon especially if one or the other needs to take sides and go along with a third board member. Agreeing with the Chairman’s position, especially if that person is of the same political party, is considered the norm rather than the exception.
Opportunities to do well do not present themselves every day. However, when presented, those who are the opportunists must grab them and accomplish the good that is able to be done. For the two remaining NCUA board members, their opportunity is now. Will they be able to put aside any past personal differences and start with a clean slate? Will they seize the day?
Michael E. Fryzel is an attorney and advisor to the financial services industry with offices in Chicago, Illinois. He is a past Chairman and Board Member of the National Credit Union Administration. He can be reached at meflaw@aol.com.