Posted by Anthony Demangone
NCUA has released the agenda for this Thursday's board meeting. This meeting practically overflows with big compliance issues. Such as...
- NCUA will issue a final rule concerning Fiduciary Duties. (The rule also addresses merger and conversion issues.) This rule is a big deal, as it will create federal standards of duty and care. In addition, NCUA may clarify expectations on financial literacy and educational requirements concerning federal credit union boards.
- A proposed rule regarding insurance coverage for non-interest bearing transaction accounts.
- A proposal to amend NCUA's "accuracy of advertising and insured status" regulation.
- There's other stuff as well, so please review the agenda.
More on Elizabeth Warren. Here are a few additional items regarding Elizabeth Warren. (I keep focusing on news stories where she is quoted, as I find her views important. She's putting the CFPB together, so her views be stamped into the new agency.)
- Earlier, I noted this article from Kiplinger.But I forgot to highlight a very telling quote from Ms. Warren. Here's the last Q and A from the article:
"What's your advice for Kiplinger's readers while they're waiting for this to happen? Anyone who carries credit-card debt from month to month is in financial trouble. This is not a normal state, nor is it sustainable over time. Not paying off that credit card is always a bad sign, so pay it off. That's my best advice."
Whoah, Nelly! Anyone who carries credit card debt month-to-month is in trouble? Really? I understand that it is sound financial advice for consumers to pay off their credit card debts each month when possible. But to assume that anyone carrying any balance is in trouble goes a bit far. There is a product that requires consumers to pay off their balance each month. It is called a charge card. A credit card is designed to be used, and carrying a balance is a basic option of the product. This quote makes it seem that Ms. Warren finds credit cards, by their very nature, to be fundamentally bad for consumers. Sort of financial cigarettes, if you will.
- Elizabeth Warren also participated in a "question and answer" session highlighted by the U.S. Treasury. There's no way her quotes were taken out of context here, as Treasury itself controlled the content. I've inserted my snarky commentary as necessary in bold text.
1) With hundreds of problems in the consumer financial products and services marketplace that the CFPB could chose to focus on, how do you decide where to dive in and begin? What have your top priorities been out of the blocks?