HOLLYWOOD, Calif.–The recent elections have led to press reports of “divided government” in Washington and a sense nothing can be accomplished, according to
NCUA’s chairman. But he said the agency is a great example of how that doesn’t have to be the case.
NCUA Chairman J. Mark McWatters, who also offered some thoughts on when two new nominees might join the board, told the California/Nevada leagues’ REACH Conference here that a divided Congress, with the House under Democratic control and the Senate under Republican control, isn’t anything novel or new, and it doesn’t mean things can’t be accomplished.
“There are prognostications that things are not going to turn out so well. Does that have to be the case?” asked McWatters. “At NCUA for the last 31 months we’ve had divided government; Rick Metsger a Democrat, and me, a Republican. The approach we could have taken 30 months ago is ‘I’m right and you’re wrong and I’m going to demand I get my way all the time.’ But that didn’t happen. Rick and I approached each other with our senior policy advisors in working through this. How did we do it?”
McWatters said the keys at NCUA have been a sense of collegiality, respect the other person, a sense of collaboration, and “the most difficult thing,” a willingness to compromise.”
Overarching Question
“So what’s our overarching philosophy for credit unions? We’re only a regulator here. It’s our only job,” he told the meeting. “The need to issue regulations that are targeted and earmarked to the actual risk presented to the NCUSIF and the credit union community by credit unions. Our job is not to do anything more than that. If there is not a risk, let’s not invent one, let’s go on down the road.”
But how long will the two-person NCUA board last? There is currently a vacancy on the board and Metsger’s term expired more than a year ago. McWatters, who made clear he has no inside information on when board nominees may be approved, made clear the recent elections may mean no changes are coming anytime soon.
He noted the current Democratic nominee hasn’t yet been officially nominated, and even if there were a hearing it would still need to be held, a vote conducted, and “precious” time on the Senate floor needed, and all that in what is expected to be a four-week session in the remaining Congress. He also reminded that technically all nominations expire at the end of every Congress.
“Whatever the president and the Senate does, that’s up to them,” said McWatters. “Right now, we have found a way to make this agency work.”