A Stabilizing Punch in the Face

I just returned from a credit union planning session. One of the topics of discussion was how much of an impact last week's NCUA decision on the "stabilization" efforts of the corporate credit union system would have on the industry's future. The concern this credit union shares with credit union leaders across the country is that the NCUA is destabilizing natural person credit unions with their corporate rescue efforts. 

A widely held perspective in the circle of clients we support is that hundreds of credit unions will be driven to untenable financial positions if this plan is enacted. That every corporate credit union will "survive" while 500 credit unions are driven out of business. 

It is certainly too soon to tell if this ill-conceived plan will have such consequences. Perhaps they will revise the plan with something a bit more sensible, though I have my doubts. Unfortunately, every credit union that spent the fall deliberating deeply on the most sensible pathway through this downturn just had their well-devised plans dealt a blow. 

I suppose that Mike Tyson is worth quoting here. He apparently once said "everyone has a plan . . . until they get punched in the face." Well said Mr. Tyson. Well said.