WASHINGTON–Following a national report highlighting large travel and entertainment expenses by the NCUA chairman, both nominees for the NCUA board were asked by chairman of the Senate Banking Committee for their position on NCUA board expenses.
Sen. Mike Crapo (R-ID) pointed to a Washington Post report that was also highlighted here that detailed expenses by NCUA Chairman J. Mark McWatters that included more than $2,500 in expenses for alcohol and two airline tickets to Vienna, Austria, that cost $11,000 each.
Crapo asked nominees Todd Harper and Rodney Hood for their positions on whether they would commit to examining why NCUA’s travel and entertainment expense policy doesn’t align with that of other federal regulators.
“If confirmed, I pledge that on day one I will work with agency leadership to better understand the NCUA policy and make sure it’s in line with other federal regulators,” said Hood, adding addressing the issue would improve trust in the board and agency.
Similarly, Harper said he would also make a similar commitment, putting a policy in place that is “clear, consistent across regulators, and communicated.”
Approach to Regulation?
Hood and Harper were also asked by Sen. Thom Tillis (R-NC) what they plan to do to better “streamline” NCUA regulations and to lighten the regulatory burden.
“I am a safety and soundness regulator and if confirmed I will work to make sure regulations are effective, not excessive,” said Hood. “As a board we review one-third of NCUA regulations every year so that every three years 100% of regulations are reviewed.”
Added Harper, “I agree. The point I would make is it’s important to tailor the rules. Credit unions have a wide range in asset sizes.”
Tillis responded to Harper’s comment by saying, “I am glad to hear that. You need to understand their portfolios and size. I worry post-crisis about the financial services ecosystem. I worry about de novo banks. Credit unions did well in the financial crisis but they got swept up in the response to the crisis.”