A pattern seems to be developing for NCUA Board members, at least those representing the Democratic Party. As the year winds down, they are unceremoniously fired by the President of the United States after refusing to resign their NCUA position as requested.
First it was former NCUA Chairman Norm D'Amours, a Democrat, who was given the ax (a fact he denied) in late 2000, long after his six-year term had officially expired. No tears were shed.
Then, as 2001 was about to become history, long-time board member and short-time Chairman, Yolanda Wheat was given her walking papers. It is doubtful that many credit union tears were shed for Wheat either, especially considering her performance at what turned out to be her final NCUA Board meeting.
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The way she conducted herself that afternoon in December probably had a direct cause and effect on her being fired. It brought back memories of her being dethroned from the Chairman's position only weeks after getting the appointment. That was the first instance where Wheat took a series of well-documented actions that angered the Bush Administration into swift and decisive action (with some well-placed urging).
Wheat's lackluster term expired last August. When fired, she was a lame duck and a part-time one at that based on the fact she no longer spent any more time in Washington, D.C. than absolutely necessary.
Her tenure ended with these few words on White House stationery: "Pursuant to the direction of the President, this is to notify you that your appointment as a Member of the National Credit Union Administration Board is terminated as of December 21, 2001. I would like to extend my best wishes in your future endeavors." The letter was about the same length and tone of the letter that sent D'Amours off to other pursuits.
Looking back, D'Amours did leave a legacy, mostly negative. Wheat on the other hand will probably be best remembered for her priorities that surfaced in the final years of her term of office. For most of her time on the NCUA Board, Wheat was regarded as a person who didn't really do much, but is sharp, well-educated, professional in her appearance and demeanor, very nice to talk with, and only mildly interested in any credit union agenda items other than those she proposed. In the end, her legacy comes down to a single agenda item, CAP, and how she fell on her sword for it.
A third Democrat, Geoff Bacino, who gained access to the NCUA Board via a recess appointment, also departed as 2001 became 2002. But unlike his Democratic cohorts, D'Amours and Wheat, Bacino wasn't fired. His recess appointment expired automatically when Congress finally decided to adjourn. In his case, credit union tears were shed, lots of them.
In many ways, Bacino left a bigger positive mark on NCUA in his months on the job than Wheat's years seated at the Board table, or at her kitchen table back home in Missouri from where she drew her final NCUA paychecks. Bacino single-handedly rescued credit unions from the credit union version (Community Action Plan) of unliked and unnecessary CRA (Community Redevelopment Act) within hours of it being enacted.
Bacino got around a lot in his short time as a NCUA Board member. Credit union audiences liked what he had to say and what he proposed (an NCUA Advisory Board for example). In contrast, from the beginning, Wheat was not a familiar face on the credit union speaking circuit.
It's not that she wasn't invited. Some say she preferred to be with her husband and young children rather than spend time in airplanes and hotel rooms and with CU folks. When she did speak it was from a carefully prepared, ghost-written script.
Like D'Amours, Wheat seemed to concentrate on a very limited agenda rather than wade into the bigger picture involving all credit unions. Instead, her focus, again like D'Amours', appeared to center around small credit unions, serving the underserved, and community development initiatives, and not much else.
Despite the hollow-sounding farewell words by Dollar, Mica, and Becker, Wheat will probably be best remembered for causing the final NCUA Board meeting of 2001 to be a marathon session as she fought valiantly for her CAP. At that point, even she had to realize that her efforts were a waste of time. There was no possibility that CAP was not going to be defeated two votes to Wheat's one.
Unfortunately, she didn't know when to quit and put NCUA in a position of possibly being called before a Congressional hearing, or becoming the object of still another banking industry instigated lawsuit. Maybe she didn't care since she was leaving? Maybe she was just posturing for the future? A representative from the American Bankers Association was there for the proceedings and told me credit unions haven't heard the end of the CAP issue. That said, it appears that Wheat's final legacy may still be playing out.
As for Bacino, as this is being written on January 2nd, he has become the recipient of a bushel basket full of sincere-sounding accolades from the same Dollar, Mica, and Becker who dug deep to find some nice things to say about Wheat as she cleaned out her NCUA office.
Meanwhile, Dennis Dollar is the lone NCUA Board member, an impossible and ridiculous situation. Perhaps even by the time readers read this, Republican JoAnn Johnson will have been given a recess appointment by President Bush bypassing the required confirmation by the Democratically-controlled Senate.
As for Bacino, don't be surprised if he gets an unprecedented second recess appointment and rides his white horse back into the NCUA Board on Johnson's coattails. Even if that scenario doesn't play out, credit unions have not seen the last of Bacino and it won't be because of Bacino and Associates. Comments? Call 1-800-345-9936, Ext. 15, or Fax 561-683-8514, or E-mail [email protected].
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