By Michael Fryzel
The board of the National Credit Union Administration (NCUA) is headed towards again being at full strength with its compliment of three members for the first time since April 30, 2016. For 26 months Mark McWatters and Rick Metsger have sat on the board and played musical chairs. First, Metsger was a board member and then became chairman. Then, when McWatters became chairman, Metsger went back to being a board member. Metsger when chairman, had the big office with the private conference room and then, when McWatters became chairman he took it over, moved his furniture in and Metsger returned to his smaller board member office down the hall.
In spite of the frequent appearances of Two Men and a Truck, McWatters and Metsger have been able, for the most part, to put aside their political party affiliations and agree on changes in rules, streamlining NCUA, and paying a rebate to credit unions for assessments paid to the agency during the corporate crisis.
While McWatters may not have been able to accomplish everything he would like as chairman, the ability to compromise and get along with Metsger has provided credit unions with opportunities, more defined regulations and some cash back.
The White House is now focused on filling all the open seats for positions in the financial services regulatory sector. The recent nominations of Kathy Kraninger to head the Bureau of Consumer Financial Protection (BCFP) and Rodney Hood to become a NCUA board member are clear indications they are serious in achieving that goal.
The Bureau
The BCFP nomination will be considered on its own merits. The success of Ms. Kraninger being confirmed as BCFP director will depend on the efforts of the White House and Acting BCFP Director/Director of Management and Budget Mick Mulvaney to get it done. Unlike the vote on her nomination, the vote on the Hood nomination will be done in a different manner.
The nomination of Mr. Hood will be part of what is called “the pairing process.” His nomination will only move forward when it is accompanied or “paired” with the nomination of an individual to fill the vacant seat on the board designated for a person from the minority party–in this case a Democrat.
If the Senate were to confirm Rodney Hood to replace Rick Metsger, there would be two Republicans on the NCUA Board all by themselves. To some that would be the perfect dream. To others, like Senate Minority Leader Chuck Schumer, it would be a nightmare he has no intention of letting happen.
Waiting on Sen. Schumer
As is customary in Washington politics, when a position needing Senate confirmation is available and requires a person who is a member of one of the two major parties, the White House usually looks to the Senate leader of that party for a name. For the NCUA vacancy that name will come from Sen. Schumer.
Speculation is that the senator from New York has already submitted his choice or choices to the White House. The Administration always prefers more than one name be submitted in case there is a problem with one nominee during the vetting process that would disqualify that person from being nominated. With more than one name in the hopper the White House is able to move on a selection if another should falter.
It does not appear at this time that the nominee will be a name out of the blue, a dark horse or someone no one knows. Many individuals have submitted their resumes asking to be considered. However, the anointment can only come from the Big Apple senator and the call will be strictly his.
Expect something soon as the White House wants the Hood nomination to move and that will happen only if he is “paired.”
Michael Fryzel is former chairman of NCUA. He can be reached at meflaw@aol.com.