The Absence of Light Causes Darkness: Editor/Publisher’s Column


Not voting is a vote. Not speaking up is condoning the status quo. Doing nothing is the same as doing something. The absence of light causes darkness. We all know these basic tenets yet practical application can be tricky because reality is grayer than simple clichés make it out to be.

Executives at Commodore Perry Federal Credit Union have alleged that an NCUA examiner made inappropriate comments to employees of the credit union, and once they complained their exam score was dropped. The NCUA so far has declined the credit union’s appeal of the exam score saying the exam was conducted following the agency’s policies and procedures.

The Supervisory Review Committee will be hearing the extraordinary appeal Nov. 7, possibly as you’re reading this. On the agency’s Web page explained the SRC, it states that the committee is only to be used when the issue cannot be resolved informally, which is how the NCUA board expects disputes to be handled. On one hand, it makes sense not to make a big stink with people you have to associate with professionally. On the other hand, it also implies a keep it in-house mentality.

The SRC, which codifies a 1994 law, required the NCUA to establish an “independent, intra-agency appellate process to review material supervisory determinations.” These determinations include CAMEL ratings of 3, 4, or 5 and its components, loan-loss reserve provision adequacy, loan classifications for loans considered significant, revocation of RegFlex and denial of technical assistance grants.

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