By Ray Birch
ALEXANDRIA, Va.—As the Trump Administration calls for federal agencies to cut staff--and also discusses combining federal regulators--is NCUA already making moves to downsize?
As CUToday.info reported, the agency held two closed board meetings—Friday, March 21 and Wednesday March 12. Both closed meetings’ topics were "personnel," according to NCUA's website.
CUToday.info has learned from sources that an early retirement program was discussed at the closed meetings. CUToday.info reached out to the agency, asking if such a program was talked about at the closed meetings. NCUA declined to comment.
Former NCUA Chairman Michael Fryzel told CUToday.info that any sizeable reduction in NCUA staff requires an assessment of priorities.
Michael Fryzel
“In the case of a financial regulatory agency, a determination must be made where such reductions will allow its most important task, the safety and soundness of the institutions it regulates, to be maintained,” Fryzel explained. “For NCUA, this would mean ensuring the examination and review staff is sufficient to monitor and examine as many credit unions as possible.”
Fryzel said he is certain the NCUA board will make every effort to retain employees not eligible for retirement to make sure they remain employed.
“Their task is not an easy one,” he said.
Fryzel said it is still too early to predict what the regulatory picture will look like a year from now.
“The discussion about any consolidation of agencies is ongoing,” he said. “There are numerous scenarios that have supposedly been presented to the decision makers. The credit union trade organizations have done a good job in reaching out to members of Congress. However, the Administration will be the one making the decision on what, if anything, will happen.”
NCUA, as CUToday.info previously reported, has also cancelled its March 27 open board meeting. The next open board meeting is scheduled for April 17.