New NCUA Board Member: 3 reasons why it won’t happen

The White House yesterday announced it would nominate Self-Help Credit Union SVP for Hispanic and Latino Affairs John A. Herrera to the NCUA board. Herrera would probably be a great board member, but the odds of him being confirmed are very slim. Here are three reasons why:

  1. He’s a Democrat. Why in the world would a Republican-controlled Senate give Democrats control of the NCUA board? Currently, NCUA board party power is balanced between Democratic Chairman Rick Metsger and Republican Board Member Mark McWatters. I doubt the goings on at the NCUA keep Senators up at night, but it would nonetheless defy logic for Republicans to cede control of any federal agency to the opposing party.

  2. He’s too political. Self-Help has close ties to the CFPB, reportedly meeting with the bureau to weigh in on payday loan regs. Senate Banking Committee Chairman Richard Shelby was a strong opponent of the Dodd-Frank Act and is no fan of the CFPB. He’s still angry with Democrats for refusing to attach his Dodd-Frank reform to the omnibus spending package last year. Shelby – whose chairman seat expires this year due to term limit – is unlikely to give Democrats anything before he leaves, especially if someone with CFPB ties is involved.

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