Headed in the right direction on FOM reform

first_imgYesterday, NCUA unveiled more than a dozen distinct changes to its Field of Membership (FOM) regulations. It will take a few days to figure out the precise impact these changes, some of which are highly technical, will have on credit unions. But, regardless of their ultimate impact, NCUA’s proposal is crucial when viewed in the context of the larger challenges facing the industry.Let’s face it, credit unions are constrained by a legislative and regulatory framework designed in the early part of the 20th Century. Limiting credit unions to distinct employee groups, distinct communities, and distinct associations made sense in an era where most communities had a manufacturing base and the suburbs had not yet changed the concept of community. Today, the Internet creates world-wide communities and the traditional model of an employee picking up his paycheck on Friday night on his way out of the local mill is obsolete.Consequently, there is no bigger challenge facing the credit union industry writ large than removing restrictions on who it can serve. Against this backdrop, NCUA deserves credit for taking a fresh look at its existing FOM regulations. But let’s remember that it was only in 2010 that NCUA, under pressure from banker litigation challenging its flexibility when approving community charter expansions, imposed many other restrictions that NCUA is now proposing to tinker with. For example, before 2010, credit unions could provide a “narrative” explaining why a proposed service area constituted a well-defined local community. A 2010 amendment did away with this flexibility, instead mandating that credit unions fit proposed expansions into pre-defined statistical areas. continue reading » 4SHARESShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblrlast_img read more

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Victor Valdes posts farewell message to Manchester United fans

first_imgVictor Valdes has sent a farewell message to his supporters as the Spanish goalkeeper edges towards an exit from Manchester United. Valdes signed an 18-month contract with United after moving to Old Trafford a year ago but fell out with manager Louis van Gaal over the summer. He did not go on the summer tour to the USA and was not permitted to train with the first-team squad. Valdes won the Champions League three times at Barcelona and has also won the World Cup and European Championship with Spain. The 34-year-old is expected to join Belgian side Standard Liege after a hugely frustrating spell at United, where he has not made a single appearance or even been given a shirt number this season. The former Barcelona player posted a message on Twitter above a picture of United’s training ground saying: “Thank you all for your support during these months of hard work for me. I will never forget! See you soon!” center_img Press Associationlast_img read more

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